Can you qualify for a car loan in Hamilton if you’re on ODSP (Ontario Disability Support Program) or other provincial assistance program?
Yes you can. Especially if you work with experts like Dixie Auto Loans.
It always amazes us how the system treats those who need a little extra help. We try to be different.
Canadians who get any kind of disability allowance or ODSP will likely be regarded as low income. The benefits can keep you going but there isn’t much space for luxury. That means we have to be very careful in how we manage it.
There are three things you can do to improve your chances of being accepted for a car loan in Hamilton if you’re on ODSP or other disability benefit:
- Improve your credit score as much as possible
Improving your credit score goes a long way to convincing lenders you’re a safe bet. It takes time, but simple things like always paying debt on time, ensuring your credit report is accurate, using a credit builder credit card and other measures can all help increase your score.
Your score is a big part of your financial life so improving your credit score will benefit other areas too.
- Use a cosigner
A cosigner is like a guarantor. They sign the loan contract saying that if you cannot make the payments they will take over and ensure the loan is paid off. It’s a significant responsibility but a surprising amount of people are willing to be a cosigner.
If you’re good with money, have little debt and know the person well, you should have no trouble finding a cosigner. If you cannot find one, there are other ways to secure a car loan.
- Work with a Hamilton car loan expert
You should use this third option as well as options 1 or 2, not just instead of. Hamilton car loan experts like Dixie Auto Loans have access to a huge range of lenders willing to work with people in all kinds of situations. That includes low incomes or ODSP.
We can help prepare you for pre approval, make sure you stand the highest chance of being accepted for a car loan and walk you through the actual application process when you’re ready.
We can also point you towards some dealerships who are worth dealing with too!
Do Hamilton car loans affect ODSP eligibility?
As long as the car loan is for your primary vehicle, it will not affect your eligibility. A loan is not income and is regarded as an essential service so will not impact your ODSP at all.
The car will also be regarded as an ‘exempt asset’, which means it won’t be counted when calculating ODSP eligibility.
That changes if you’re planning on buying an extra car but if the car loan in Hamilton is for your main car, to help you get around, it won’t be counted.
If you’re in receipt of ODSP or other benefit and are looking for a car loan in Hamilton, it helps to work with experts. Experts who won’t judge and who have the experience in dealing with specialized cases that require a little extra help. That’s Dixie Auto Loans.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!