Banks and lenders of all kinds have become much more tolerant of less than perfect credit scores over the past seven years. It took long enough, but the credit crisis showed them that it isn’t always our fault if we lose control of our finances. Bad credit car loans are only one of many results of the credit crisis and one of the more positive ones.
Even though the economy is in recovery and things are returning to normal, natural hesitance in applying for credit remains. That’s especially true for anyone caught up in the recession or whose credit scores were negatively impacted. The tightening of lending criteria may also have you worried, but there’s no need to be.
Getting a bad credit car loan after bankruptcy
Getting a bad credit car loan after bankruptcy used to be impossible. Lessons learned and a new financial landscape has made it possible to acquire credit even after a bankruptcy. Lenders such as CarLoan4You specialize in providing affordable credit to anyone who needs a car.
There are four things you need to do to improve your chances of getting credit when your scores are less than perfect.
Check your credit report – Knowing what your report looks like and adding explanatory notes to potential issues will not only show you where you are, but a lender too. Knowing what your record says and adding a note to explain what happened can go a long way to helping you get a decent rate on your bad credit car loan.
Plan your car purchase – Planning your car purchase is all about figuring out how much you can comfortably afford to borrow, at what interest rate and for how long. It’s also about going through pre-approval and setting the scene for the bad credit car loan itself.
Find a car and apply for credit – Next it’s time to visit your nearest Car Nation Canada dealership to see what’s on offer. We will work with you to find a car perfect for your circumstances and what you need of it. We can also help with the bad credit car loan application and handle everything for you.
Maintaining payments and rebuilding credit – Having a plan in place to ensure prompt payment of any lending is the final aspect of managing a bad credit car loan. Demonstrating that you can and will allocate payment promptly and regularly will go a long way to being accepted. Servicing the loan in the long term will also help rebuild your credit score.