Just because you have had issues with credit in the past, doesn’t mean you cannot get a Kitchener car loan with bad credit if you need one. Gone are the days where a simple situation prevents you accessing loans and other financial products and we hope those days never return!
How do you go about getting a bad credit car loan? What paperwork do you need and what do you need to be aware of?
This is the first of a two part blog post covering everything you need to know about getting a bad credit car loan in Kitchener.
Kitchener Car Loan with Bad Credit
If you have bad credit but need a car to get to work or take the kids to school, what do you do? The answer is to work with experts like Dixie Auto Loans to access competitive bad credit car loans.
These are specific products designed for those with less than perfect credit. Often referred to as subprime car loans, these products are ideal for those who have had debt issues in the past.
As many Canadians have bad credit through no fault of their own, it seems unfair to penalize anyone for something they didn’t do. Which is why we have bad credit car loans.
How to Get A Kitchener Car Loan with Bad Credit
Bad credit car loans are actually very similar to standard ones. The application process is largely the same too, although you may find it better to work with a specialist lender rather than a mainstream one.
While you’re there, check for any errors or mistakes too as these can impact your credit score.
If you have the time, wait a while to rebuild your credit before getting a Kitchener car loan. An improvement of even a few points could significantly lower your credit score and save you money.
If you need the car right away, you’ll need to put a down payment together and gather your paperwork. The more money you can put down, the better. You will borrow less and assume more of the risk.
Lenders don’t like risk so the more you take on, the better.
What paperwork do you need for a bad credit car loan?
The advantage of bad credit car loans is that they look beyond the credit score. The bad news with bad credit car loans is that lenders look beyond the credit score.
This can mean a higher burden of proof for you. That means proving income, proving outgoings, proving you have your financial life on track and proving you can afford the loan repayments.
You will need bank statements showing your salary and outgoings, proof of any other income, proof of a job if you’re a new starter, proof of ID and address, proof that any debts you had are all paid off and your latest tax return if you’re self employed.
If you prepare all this in advance, your application will go a lot faster and a lot smoother.
Join us tomorrow when we continue outlining the process of getting a bad credit car loan in Kitchener.
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!