Applying car loan as a fresh grad? It may be rejected for these reasons, but here's a solution

Now that you’ve made through university and perhaps you might have already landed yourself a job. The next thing on your mind now is getting your first car.

But depending on individual, your loan application may or may not get approved. Here are a few common reasons why.

Lack of credit history

To put it short, there’s no history of you servicing loans or even credit cards under your name, so you have no credit score. Which means the banks cannot determine if you are capable of repaying the loan.

Insufficient documentation

When applying for a loan, several documents will be required such as bank statement or payslips. Most banks usually require at least 6 months of employment history to ensure income stability.

If you’ve just started out, you would have to wait at least 6 months before you started applying for loans.

Debt Service Ratio too high

If you’re already employed for more than 6 months but you’ve already got yourself a credit card, and you’ve been spending lavishly on it. This will be reflected in your credit reports to which the banks will refer to. If they find that your Debt Service Ratio is too high (lack of cash at hand), then the loan will likely be rejected. 

Fret not, there’s Carsome Capital

Carsome Capital has a solution for fresh graduates, or those with a minimum of a degree within five years of graduation, to secure their first car. Applicants aged up to 35 years old are eligible to apply with just their employment letter of offer. Note that this is only applicable for Carsome Certified cars.

Carsome Capital is offering competitive interest rates and loan amount depending on customers salary and financial records, which will be evaluated by Carsome Capital standard.

You can apply for a loan tenure for up to 9 years, and here are the requirements:

1. Employment offer letter
2. Degree certificate (within 5 years of graduation)
3. Comfort guarantor (with no minimum requirements, different from conventional guarantor banks require, e.g., parents)
4. Driver’s license
5. Identification card (IC)

If you are keen to buy your first car with Carsome, log on to carsome.my/buy-car to browse for the car you want. And if you fancy it, you can opt for Carsome Capital’s auto financing option.