When we provide a pre-qualification, we use limited information available at that stage, which is effective at identifying the most common causes for declines. The pre-qualification utilizes a soft credit inquiry, which is private and has no impact on credit scores. During the full application process, additional details become available, including a more complete credit history and a review of financial information. Based on this more complete picture, an application may be declined for reasons such as:
Credit Profile
Significant differences between information provided and your verified credit history
Undisclosed or recently reported items such as bankruptcies, proposals, or collections
A high number of recent credit inquiries or new high-interest loans
Debt & Income
Debt levels that are too high relative to income
New or significant obligations taken on after pre-qualification (for example, large vehicle loans)
Significant debt obligations that may not appear in credit bureau data
Income that appears insufficient or unstable to support loan payments
Banking History
Frequent returned or non-sufficient funds (NSF) transactions
Evidence of financial activity that may present elevated repayment risk
Irregular cash flow that suggests difficulty in maintaining consistent payments
Responsible Lending
Situations where taking on additional debt would not be in the applicant’s best interest
Concerns that repayment of the loan would cause undue financial hardship