GM Financial approved then rejected loan

[Tyrell]

GM Financial approved my loan application at the dealer for 0% 36mo. Great, let's do the paperwork and I'll take this truck home! Glad I have excellent credit.

Fast forward to today...4 wks later. I received a letter from GM Financial saying I was declined for the loan. What? How? Now what?

 

[genestoy]

Common practice, the dealers "shotgun" the loan app to several lenders. By now you were accepted by one of them but not GM that is why you got the letter.

 

[Tonyv__]

Common practice, the dealers "shotgun" the loan app to several lenders. By now you were accepted by one of them but not GM that is why you got the letter.

How does that work? Out of curiosity… I assume when you’re at the dealership signing papers you are signing an agreement with the loan company too? How do they just change after you leave.

Or did OP sign something he didn’t read?

 

[todayusay]

usually it's in the paperwork you get when you purchase the vehicle, form that says the lenders they may have shopped it to...usually tied in with the credit score report...as far as rejecting it 4 weeks later...not sure, don't know of any other lenders that'd offer a 0% loan other than the manufacturer so yeah, a little odd...by this i mean when the papers are signed it should not only show the lender, but the interest costs over the loan period (as well as the rate)...

 

[swathdiver]

GM Financial approved my loan application at the dealer for 0% 36mo. Great, let's do the paperwork and I'll take this truck home! Glad I have excellent credit.

Fast forward to today...4 wks later. I received a letter from GM Financial saying I was declined for the loan. What? How? Now what?

Your credit score may have changed in that time, especially if your credit card balances went up. Read the letter again, there ought to be a reason given. It's the law in my state if memory serves. More times than I care to remember, even after advising them, clients went out and bought a car after signing the contract to buy a home. Their credit was run again before closing and they were turned down. Most were still able to complete the purchase with more money down and or a higher interest rate.

 

[Tonyv__]

usually it's in the paperwork you get when you purchase the vehicle, form that says the lenders they may have shopped it to...usually tied in with the credit score report...as far as rejecting it 4 weeks later...not sure, don't know of any other lenders that'd offer a 0% loan other than the manufacturer so yeah, a little odd...by this i mean when the papers are signed it should not only show the lender, but the interest costs over the loan period (as well as the rate)...

Yeah that’s confusing. If I pull up the paper work on my Yukon I’d be almost certain that I’ve signed a few documents that include the bank I borrowed from, the amount, the payment, and payoff date..

Which IMO is a legal binding contract between me and that lender. But what do I know

 

[tom3]

Are you driving the truck now?

 

[Tyrell]

I've re-read and re-read again all my paperwork. I signed and they signed everything. Incentive acknowledgement form stating 0% for 36, Sales contract stating 36 monthly payments of $x, starting on x date; etc. Calling the dealer today to see what's going on.

 

[Tyrell]

Dealer checked on his end and confirmed my deal was funded by GM Financial. Since this letter I'm holding is approx 10 days old, I'm going to assume he has latest info. Finance guy guessed the letter was maybe in response a request for a loan with $0 down. Not sure. I did put $ down so that wouldn't have been the deal we signed on. Probably would have been a more clear situation if the letter spelled out the terms that were requested which ended up being rejected.

Bottom line, I'm good to go.

 

[JGinLA]

We have been buying vehicles 50 years, credit scores over 800, no credit card debt. Until our '22 Tahoe arrived the only debt we had was a home equity loan ($56/mo. + whatever we pay on principal). Finance man got us a good rate from a credit union we had never done business with. Days later we got the car loan denial letter from our home equity bank. Salesman said it might be sour grapes.

 

[Quark]

Talk to your attorney. Can't go far these days without one.

 

[Polo08816]

When do you guys think the auto credit market is going to blow up?

 

[Doubeleive]

When do you guys think the auto credit market is going to blow up?

soon and places like carmax that have been snapping up used inventory are going to be knee deep in the mess as well

 

[Just50]

You may have received whats called an adverse action, which tells you essentially that they look at your creditworthiness on making the credit decision. Some lenders only send this to apps declined. Some send it to all.

If your dealer aint' BLOWING you up for the truck back, you're just fine.

 

[AnnemarieToefield]

As a rule, the bank has the right to refuse to grant a loan without giving a reason. This condition is usually spelled out in the application (offer) for a loan. Based on the evaluation of the borrower, the bank may first approve the loan and then, as a result of careful checks, deny the loan. Often, a bank's negative decision to grant credit can affect these factors, individually or in combination. For example, the borrower has a positive credit history and income level that meets the bank's requirements. Still, the borrower has a high level of debt: there are credit cards or due credit. The reason for refusal can also serve as a simple bank error. Either way, I suggest you contact Mortgage Broker Basingstoke. As I have been helped there more than once with credit issues.

 

[Doubeleive]

As a rule, the bank has the right to refuse to grant a loan without giving a reason. This condition is usually spelled out in the application (offer) for a loan.

no they don't, you must be used to getting pushed around
If a lender rejects your application, it's required under the Equal Credit Opportunity Act (ECOA) to tell you the specific reasons your application was rejected or tell you that you have the right to learn the reasons if you ask within 60 days

 

[Blackcar]

We have been buying vehicles 50 years, credit scores over 800, no credit card debt. Until our '22 Tahoe arrived the only debt we had was a home equity loan ($56/mo. + whatever we pay on principal). Finance man got us a good rate from a credit union we had never done business with. Days later we got the car loan denial letter from our home equity bank. Salesman said it might be sour grapes.

In our area home equity loan is not for anything special you just have a line of credit to write checks and usually the equity line of credit is a percentage of value of home it is on,

 

[tom3]

I'm wondering if a $80K car loan on home equity might be the back breaker on that deal? That's a lot of money with little return and doesn't add much to the loan collateral over time. Or was this a complete separate loan for the vehicle?