Tips for Securing a Bad Credit Car Loan
Funding a new car after bankruptcy or with adverse credit can be a challenge, but it's one that can be overcome. Car Nation Canada works with many customers with less than perfect credit and the vast majority of them drive out of here happy with a new car thanks to our competitive bad credit car loans. We could do the same for you.
To maximize your chances of securing a bad credit car loan, follow these top tips:
Check your credit report
The first step before applying for any kind of credit is to check your credit report. Look for errors and inaccuracies and address them if you find them. If there are things on your report that could benefit from a quick explanation, add a note. You can add notes to give context to a situation and to explain anything negative.
Streamline your financial life
If you have lots of bank accounts, store cards or credit cards, start closing them down. Any that have a zero balance close immediately. Those that need paying off, close once paid. The fewer active accounts you have, the better it looks to a potential lender. Especially if all balances have been paid in full before closure.
Check your finances
Perform a detailed check on your finances to assess how much money you can afford to borrow. Bad credit car loans can only be offered if you pass an affordability check so you should find out in advance whether you can afford one or not. Doing this will also provide a realistic figure to borrow, which then lets you know how much you can afford to spend on your new car.
Set up a payment plan
Before heading to the dealership, write down a payment plan that shows your income, your outgoings and your projected loan amount each month. This will show the lender that you're aware of your financial position and have planned your financial future accordingly. Having this prepared before you apply for a bad credit car loan not only speeds the application process, it also strengthens it.
Work with a responsible lender
A bad credit car loan can help rebuild your credit score and get you a new car. To ensure you get the best rate and the best deal, you need to work with a responsible lender. Not all lenders are created equal, especially in subprime auto loans. Work with us at Car Nation Canada for a great deal on a loan and a new car!