Why can I get approved for an auto loan but not for an unsecured credit card? This question is about Unsecured Credit Cards

Why can I get approved for an auto loan but not for an unsecured credit card?

This question is about Unsecured Credit Cards

John S Kiernan, Managing Editor

@John • 02/28/20 This answer was first published on 06/04/18 and it was last updated on 02/28/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You may be able to get an auto loan but not an unsecured credit card because approval standards vary by lender. So what a particular auto loan company might be comfortable lending could be quite different from what a certain credit card issuer will extend. It could also be that your credit standing changed between the time you bought your car and when you applied for your credit card.

We recommend double-checking your current credit score to see exactly where you stand and to identify what might be holding you back.

If your credit is damaged for one reason or another, a secured credit card with no annual fee will be the cheapest way to rebuild your standing. That might not be what you want to hear, but there’s no reason to overpay for an unsecured card if you don’t absolutely need an emergency loan.

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