What to Do If You Get Carvana Pre-Approval and Then Get Denied
Getting a car loan pre-approval can be a thrilling first step toward buying your new car. Nevertheless, it can be perplexing and upsetting to be pre-approved by Carvana just to have your application later rejected. What you can do to comprehend the circumstance and deal with it is as follows:
Steps to Take If You Are Denied After Pre-Approval:
Understand the Reason for Denial:
Carvana or the financing partner will usually provide a reason for the denial. Common reasons include changes in credit score, income verification issues, or discrepancies in the application.
Review Your Credit Report:
Obtain a free copy of your credit report from one of the major credit bureaus to check for any recent changes or errors that could have impacted your approval status.
Verify Your Information:
Double-check the information you provided during the application process. Ensure there were no mistakes or missing details that could have led to the denial.
Improve Your Credit Score:
If your credit score has dropped, take steps to improve it. This can include paying down existing debts, making on-time payments, and avoiding new credit inquiries.
Increase Your Down Payment:
A larger down payment can sometimes offset a lower credit score or other financial concerns, making you a more attractive candidate for financing.
Contact Carvana’s Customer Support:
Reach out to Carvana’s customer service team for further clarification and assistance. They may provide insights into why the pre-approval was rescinded and offer alternative solutions or recommendations.
Tips for Future Applications:
- Maintain a Stable Financial Situation: Keep your income and employment stable, as significant changes can impact your loan eligibility.
- Stay Informed: Keep track of your credit score and report regularly to be aware of any changes or issues.
Conclusion
Even though receiving a denial following a pre-approval can be discouraging, things can still go forward. You can raise your chances of getting financing again by learning the reasons behind the denial and taking proactive measures to resolve any problems. Never forget that you can always choose a different course of action and resume your car purchase.
