Why don't you pass the mortgage examination?How to deal with the failure of the examination and how to get in the car of your choice | Carmo Magazine for tips on buying a car

It is a car loan that many people consider when it is not possible to purchase a car in bulk with cash, but in order to use it, it is necessary to pass the examination, and some people fail the examination. What are the possible reasons for not passing the examination?

Therefore, I will explain the reasons why the car loan examination does not pass and the measures for reexamination. Also, let's take a look at the services that are said to be easier to pass the examination than a mortgage, where you can choose your favorite new car.

Click here for how to get on a new car with an interest rate of 0 yen and installments, which is used by those who failed the car loan examination.

The main reasons for not passing the mortgage examination

The mortgage screening criteria have not been published, and if you fail the screening, you will not be able to tell us why you are not passing. Therefore, if you do not pass the examination, you need to consider the reason by comparing it with your own situation at the time of applying for the examination. First, let's look at the general mortgage screening criteria and the main reasons for not passing the screening.

The mortgage loan review checks the applicant's repayment ability to ensure that repayments are not overdue during the repayment period of several years. At that time, one of the factors to judge is the annual income.

The standard annual income varies depending on the financial institution and credit company, but the general guideline is that the previous year's annual income was 2 million yen or more. Therefore, if your annual income for the previous year is below this line, it may be one of the reasons why you cannot pass.

It is also important to balance the amount of annual income and the amount of borrowing. It will be examined including whether the desired amount of borrowing is too much for the annual income, whether the upper limit of the borrowing amount has been reached, and whether the amount can be repaid together with borrowing such as other loans and credit card cashing. increase.

In mortgage examinations, there are many cases where the applicant's conditions state that he / she has a continuous and stable income. As a lender, you should definitely check if you have a stable income so that you can repay it without delay every month.

Income stability is generally judged by employment type, and regular employees such as full-time employees and civil servants tend to be regarded as having stable income on a continuous basis. On the other hand, non-regular employees such as self-employed people, sole proprietors, dispatched laborers and part-time workers tend to be regarded as unstable in their income, which tends to be disadvantageous at the time of examination.

In the car loan examination, the credit information that records the payment status of the applicant's credit card and the history of personal bankruptcy is also checked. If you have cleared your debt within the last 5 to 10 years, or if you have delayed the repayment of a loan or the payment of taxes, utilities, etc., your credit information will be damaged and you will be disadvantaged in the examination.

Even if you cannot withdraw your mobile phone charges or card charges due to insufficient balance in your account, or if you forget to repay your cashing, your credit information may be damaged, so be careful.

If you declare false information just because you want to pass the mortgage loan examination, you may not be able to pass the examination and you may not be able to apply for the loan again.

The examination will also check whether the declaration is true, so never list the place of employment that you have already retired from, or falsify your annual income or years of service. In the worst case, you may be sued by a loan company.

Click here to find out more about car loan screening

Tendency of those who do not pass the examination

Here, we have summarized the trends of those who do not pass the examination, based on the main reasons why they do not pass the examination of car loans. Check to see if there is anything that applies to you.

Those who do not have a stable income due to non-regular employment, or those who want to buy a car with a high income and do not have a good balance between the desired amount of borrowing and the annual income can be said to tend not to pass the examination. ..

For financial accidents that damage credit information, "long-term delinquency" in which payments are delinquent for two to three months, "debt consolidation" such as voluntary consolidation and self-bankruptcy, which are procedures for reducing debt, and payments to guarantee companies are replaced. For example, "subrogation payment". Those who have had such a financial accident within 5 to 10 years are likely to be at a disadvantage in the examination.

The review also checks years of service to see if you have a continuous income. Therefore, those who have been working for less than one year immediately after getting a job or changing jobs, or those who have retired and have not yet taken a new job may not pass the examination.

Even those who do not pass the mortgage examination may be able to get on a new car.Click here for details

What to do if you do not pass the mortgage loan examination

There is no way to be sure that you will pass the mortgage loan examination because you cannot know exactly why you did not pass the mortgage loan examination. However, if you know the main causes of the failure of the examination and take appropriate measures, it may be easier to pass the examination, so let's check here.

If you lower the amount you want to borrow, you can lower the repayment burden rate, which increases your chances of passing the examination. The repayment burden rate is the ratio of the annual repayment amount of all borrowings to the annual income, and about 30% is a general guideline. There are ways to reduce the amount of borrowing, such as downgrading the car you buy or using a used car instead of a new one.

If your annual income is low or your income is unstable and you are uncertain whether you will pass the examination, you may be able to lower the hurdles for the examination by preparing a down payment. By making a down payment, you can reduce the amount of borrowing you want to be examined.

In principle, you are free to prepare a down payment, but the general market price is about 20 to 30% of the vehicle body price. Also, by putting a certain amount of down payment, you can give the impression that you can save money in a planned manner, and it may work positively at the time of examination.

In the car loan examination, it is also confirmed whether the amount of borrowing including the loan currently being repaid and cashing is not too much for the annual income.

The upper limit of the borrowing amount is set to about 30% of the annual income based on the repayment burden rate mentioned earlier, so if you are already using a loan or cashing, do not exceed this ratio. prize.

It is also important to eliminate the borrowing that is being repaid as much as possible and not to make a new borrowing before the car loan is examined. Make sure to pay taxes, utilities, mobile phone charges, etc. within the deadline.

A guarantor is a person who takes over the repayment when the contractor becomes unable to repay. By setting up a spouse, parents, or relatives living together as a guarantor, you may be able to cover low annual income and unstable income.

However, if you have a guarantor, the guarantor's repayment ability will also be examined. Therefore, ask someone who has a stable income and has been working for a long time.

You can check your credit information by making a disclosure request to the credit information agency. There are three types of credit bureaus, each with different affiliated financial institutions and disclosure request methods. Check the procedure from the official website of the institution you want to contact.

It is said that even if the credit information is damaged, it will be deleted after a certain period of time, and it is generally said that it will be about 5 to 10 years after the information is registered. Therefore, if your credit information does not pass the examination, you can increase your chances of passing by applying again after a while.

There are several types of car loans, including bank-affiliated car loans, dealer loans, and in-house loans. The difficulty of the examination differs depending on the type of loan, and the interest rate and advantages / disadvantages also change, so even if one company fails the examination, another car loan may pass the examination.

In the next section, we will explain the difficulty and characteristics of each type of car loan.

Is there a car loan with a sweet review?Click here for more information

Examination difficulty for each type of mortgage

Car loans can be broadly divided into three types: bank-affiliated car loans, dealer loans, and in-house loans. Here, let's take a look at the difficulty of examining each car loan along with its characteristics.

It is a car loan contracted with financial institutions such as banks and credit unions, and the attractive point is that the interest rate is as low as 1 to 2%. Loans have a wide range of uses, and can be used not only for purchasing cars, but also for vehicle inspections, repairs, and obtaining licenses. Another advantage is that the contractor owns the car even during the repayment period, so you can freely customize and transfer.

Because of these many merits, the difficulty of examination is high and it tends to be the most severe of all mortgages. In addition, it takes several days to a week for the examination.

It is a car loan contracted through a credit company affiliated with a dealer, and the interest rate is 4 to 8%. As interest rates are higher, the difficulty of examination is lower than that of bank-affiliated car loans, and the speed of examination is also an advantage.

However, the use of the loan is limited and basically only the purchase of cars and options. In addition, since the owner of the car during the repayment period will be the dealer or loan company, in principle it is not possible to sell or change the car until the repayment is completed.

It is a car loan provided by a car dealer and is generally handled by a used car dealer. Unlike other car loans, the interest rate is often 0% and the difficulty of the examination tends to be low because the loan contract is made directly with the dealer.

However, it should be noted that the total payment amount tends to be large because the fee equivalent to the interest rate is added to the vehicle body price.

How to get in the car to relieve the anxiety of not passing the mortgage examination

Even if you do not pass the mortgage examination, if you have a car leasing that allows you to drive a car like a car with a flat rate, you may be able to pass the examination and get on a new car.

As with car leasing, the car leasing screening criteria are not specified, but some people can still use car leasing even if they fail the car leasing screening. Let's see why car leasing is easier to pass the examination than car loan, the reason and the voice of experienced people.

Car leasing is a service that involves renting a car, not money. Therefore, there is no concept of interest rate, and the vehicle body price of the car to be rented is the amount after deducting the "residual value" which is the assumed trade-in price of the car at the time of contract expiration. Since there is no interest rate and the residual value is deducted, the amount to be examined can be suppressed compared to a car loan, so the possibility of passing the examination is high.

In addition, the borrowing period of a car loan is generally about 5 to 7 years, but a long-term contract such as a maximum of 11 years is possible for a car leasing. By that amount, the monthly payment amount can be reduced compared to a car loan, so the repayment burden rate can also be reduced. For this reason, it is believed that car leasing is more likely to pass screening than mortgages.

Mr. K, 40s | Bus driver. This is the second time for a child to live alone and ride the Move.

At first, I was thinking of buying a car, and when I applied for a mortgage, I didn't pass the examination. When I looked it up, it seemed that I had forgotten to pay my cell phone fee before.

At that time, I learned that there is a method called car leasing other than car leasing, and while investigating various leasing companies, it was said that fixed amount Carmo might pass the examination, so I applied. bottom.

I felt relieved when I received and answered inquiries over the phone, so I didn't feel anxious or distrustful. I am satisfied that I passed the examination safely and got on a new car of the desired model.

I got on a new car even though I failed the mortgage examination!Click here for how to do it

Mr. K's "Advantageous My Car Flat-rate Carmo-kun" has a "trial examination" that you can easily apply online, and you can check in advance whether you will pass the examination. It takes about 5 minutes to apply, and the result will be notified as soon as possible on the next business day (up to 3 business days), so even if you are in a hurry, you can rest assured.

Also, if it is difficult to pass the examination, you can be introduced to the car models and plans that you can apply for, so you do not have to give up your car. Even if you pass the examination, it will not be a contract, so it is also recommended for those who just want to know if they can use car leasing.

Even if you don't know the reason why you don't pass the mortgage loan examination, you can get in the car depending on your ingenuity.

It's not so easy to deal with because you can't tell us why you didn't pass the mortgage review. Therefore, why not consider riding a car in a way like car leasing so that you can live a comfortable car life with spending that is commensurate with your income and household situation.

It will be easier to make future plans by first diagnosing whether you can use car leasing with the "trial examination" of fixed-price carmo. It is possible to cancel or change the plan after the examination, so it is recommended that you first take a trial examination in order to take a step forward.

FAQ

A: Reasons for not passing the mortgage examination are low annual income and imbalance between income and desired amount of borrowing. Non-regular employees whose income is likely to be unstable, those who have experience in debt consolidation, and those who have been in service for less than one year also tend to be disadvantaged in the examination.

A: If you do not pass the car loan examination, you can reduce the amount you want to borrow, prepare a down payment, cancel other borrowings, check your credit information and eliminate the cause, attach a guarantor, etc. there is. One option is to consider another mortgage that is less difficult to review.

A: If you have a car leasing with a fixed monthly fee, you may be able to pass the examination because there is no concept of interest rate and it is easier to reduce the payment amount than a car loan by setting residual value or long-term contract. With the fixed-price Carmo-kun's "trial examination," you can check the examination results first, so it will be easier and more reliable than a car loan.

* This article is based on information as of February 2022.