If you're shopping for a car right now, you might notice something: lenders are getting pickier. Approval rates are down. Credit requirements are tighter. And that "easy approval" you saw advertised last quarter? That's getting harder to find.
This isn't random. Banks are actively tightening credit standards, and it's happening for specific reasons. Understanding why helps you structure a deal that actually gets approved.
What's Actually Happening
Lenders are seeing higher default rates. Delinquencies are up. And when that happens, banks pull back. They don't stop lending—they just get more selective about who they lend to and how they structure deals.
This means:
- Higher credit score requirements
- Lower loan-to-value ratios
- Stricter debt-to-income scrutiny
- More documentation required
What This Means for You
If your credit is marginal, this is the wrong time to go it alone. Dealers will run you through one lender, get a decline, and move on. I work with multiple lenders, structure deals differently, and know which banks are still aggressive—and which ones to avoid.
How to Position Yourself
The key is structure. A deal that gets declined at one bank might get approved at another—if it's structured right. That means understanding loan-to-value, debt-to-income ratios, and which lenders fit your profile.
The reality: Most people don't get declined because they're unqualified. They get declined because the deal wasn't structured for the right lender.
Bottom Line
Credit tightening is real, but it's not the end of the road. It just means you need better structure and lender selection. That's where I come in. I don't just submit your application—I structure the deal that gets approved.