2 THINHS THAT MAKE THE LOAN APPLICATION NOT APPROVED

Currently, finance companies repossess vehicles from debtors in significant numbers, causing almost every finance company to intensify their scrutiny in evaluating credit for each customer. If you are planning to buy a new car, we strongly advise against doing two specific things.

1. Submitting multiple applications
Many people often think that applying for loans from multiple sources simultaneously will increase the chances of loan approval. However, in reality, every time a loan application is submitted, banks will check the applicant's debt repayment history with credit bureaus. If the bank discovers multiple loan applications within a short period, it may result in loan rejection, or what is known as "tagging" (or tracing). This is because it signals that the borrower may have an urgent need for funds, increasing the risk of future default on repayments.

Tracing does not only count for car loan applications but also includes applying for credit cards, cash advance cards, personal loans, home loans, and others.

Therefore, if you plan to buy a new car, it is advisable to apply for a loan through a single dealer only. Avoid submitting loan applications to multiple dealers simultaneously, and you should refrain from applying for other types of credit as well.

2. Conceal financial information
Providing financial information directly to the dealer will help increase the chances of approval. Whether it's sources of income, vehicle repayment history, credit card debt, or cash advance debts, furnishing this information will enable the dealer to choose the most suitable financing options and maximize the chances of obtaining approval to the fullest extent possible.