Im trying to understand how im falling short here.
So I went into a dry spell and lost my job close to a year ago. A month before I lost the job I was applying for car finance at westbank and got rejected because I didn't have credit history(I was 23 and didnt know jack about credit). So I got a credit card and stuff to improve my score. Now I have a 640 score.
After losing the job instead of waiting and applying I immediately rented a car to do uber, paying bro about 2500(rands) weekly :,)
Uber is tedious and stuff so one month in, i started a tourism company and registered it with this rented vehicle. I cold emailed until i landed a contract with an institution. Now they pay me well but it doesnt feel like it because of the 2500(rand) I still have to pay weekly.
LONG STORY Short. I applied again on the website and it got declined again! I don't understand, I have consistent money coming in monthly ranging between 10k-40k(rands) depending on the month. I have a 640 score. And I pay 10k(rand) monthly to rent the car. WHAT AM I DOING WRONG?
If I can pay this much on a monthly surely that 3k installment isn't much for me. I dont know where to go. Financing a used car would save me a lot. So please, of you know how to maneuver around this problem let me know.
1 Dollar = 16 Rand
Struggling to get approval for financing
byu/PuzzleheadedForm9403 inpersonalfinance
Posted by PuzzleheadedForm9403
3 Comments
How much money are you trying to borrow? Auto finance usually works in a ladder fashion, they want to see you borrow and pay back $20k b4 they will loan you $50k, then when you pay the $50k back they will let you borrow $80k, etc. If you are trying to borrow $500k for an exotic car with no history of previous auto loans, you probably do not have a way forward. r/askcarsales might have some good insight for you.
an auto loan for 3k/month? what the hell are you trying to buy, a tour bus? 640 is below average credit score and your entire credit history is less than a year old, so that coupled with what sounds like a massive auto loan means unfortunately you’re still a giant red flag to lenders. you’re going to need to start much smaller.
A 640 score usually isn’t terrible by itself, but lenders also care a lot about income consistency, job history, debt obligations, and how stable your cash flow looks on paper, especially if you recently went through unemployment and now have self-employed income. The frustrating part is you can clearly afford the payments in real life, but banks tend to trust predictable paperwork more than hustle, so a longer history of business income and cleaner bank statements will probably help a lot.