Bad credit should not prevent you living life as you want to live it. Bad credit may present challenges but it should never stop you doing what you want. That’s our philosophy anyway. And that’s the subject of today’s post. How to secure a bad credit Stoney Creek car loan the easy way!
Bad Credit Stoney Creek Car Loan
There are five simple steps to securing a great deal on a bad credit Stoney Creek car loan and we’re going to share them right here.
Check your credit
Before you do anything else, you need to know where you stand. That means checking your credit report and your credit score.
You will want to note any inaccuracies and have them fixed by the organization that made the entry. You will also want to check your payment history for any mentions of missed payments and go through every entry on your report to check it is 100% accurate.
You should also check your credit score. Both your score and your payment history will influence your chances of getting an auto loan to pay attention to both of these.
Tidy up your financial life
Depending on how much time you have before you need the bad credit auto loan, you can also have a tidy up.
If you have multiple open credit cards, close those you don’t use. Keep a couple of cards, the cheapest ones of course, but close others down.
If you have outstanding debt, pay as much of it off as you feasibly can. Keep a little credit card debt as this positively affects your credit mix but pay everything else off.
Save for the down payment
Again, depending on how much time is available, save up as much as you can for a down payment on the new car. The more you put down, the more likely you are to be accepted.
Lenders like it when you use a large down payment as it insulates them more from loss if you default.
It also lowers the amount you need to borrow, which also increases the chances of being accepted.
Get your paperwork together
You’ll need some paperwork to successfully apply for a bad credit auto loan in Stoney Creek. You’ll need proof of ID, proof of address, proof of income, at least 3 month’s bank statements and proof of any other income.
The more paperwork you have to demonstrate you can afford the loan, the more likely it is you’ll get one. Preparing it all in advance will help speed up the loan application process.
Get preapproved and then approved
We recommend auto loan preapproval as it’s an effective test run to show how much you could borrow. This will prevent you asking for too much and having your main application rejected.
Doing this nice and early should also set your expectations on what type of car you could get and how much you can spend on one.
Then it’s time to apply for the bad credit car loan itself. If you have your paperwork, have a sufficient credit score, can afford the repayments and have some kind of down payment, you’re good to go.
When that time comes, visit us and we’ll get you a fantastic deal on a Stoney Creek bad credit car loan!
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!