If you have been turned down for a car loan in Burlington, it can be a painful experience. We all need a car but with the average price of a new car rising daily, the majority of us need to take out a loan to buy a car.
When you have credit issues, it can turn the car buying experience into an emotional rollercoaster.
Our Burlington auto loans team are going to show you how to get a car loan and rebuild your credit at the same time.
Assessing your credit profile
We need to start by looking at your credit profile and understanding your financial situation. To do this, we need to know your credit score and the details within your credit report which can be accessed for free online.
Do you have any accounts that are past due/delinquent or sent to collections?
The first item of business is to pay any past due accounts so they do not end up in collections. We understand this is a labor-intensive step but it needs to be done. You cannot get any car loan approved if you have accounts in collection or past due.
When you have paid your past due accounts and settled the collections on your credit report, then you can start the rebuilding process.
The simplest way to rebuild your credit
Start by using pre-authorized payments with all of your creditors. By taking this step, you will never miss another payment which as we touched on earlier is the main reason Canadians have a low credit score.
You should also pay down the current debts you have, by reducing the total amount of debt you are servicing, your credit score will stay in positive territory and you will save money on interest.
Accessing the most competitive car loan interest rates
Now that you know how to repair and rebuild your credit, you can start looking for lenders that will give you a great deal. Numerous online lenders provide car loans, but the rates they are quoting are not the most competitive.
If you want competitive rates you need to go to someone with wholesale access.
The way to access the most competitive auto loans in Burlington is by going through a local car dealership. How can a brick-and-mortar business compete with online loan providers? The dealerships have access to wholesale lending that the websites cannot access.
If you are wondering why the dealerships can offer these rates, it comes down to an economy of scale. The lenders know that dealerships are the best source of car loan customers so they give the dealerships preferential treatment.
Not only can the dealership get you a low-interest rate, but if you are experiencing any credit challenges, they can give you the advice you need to turn things around for the better.
While you work on rebuilding your credit, you should visit your local dealership to explore what options are currently available to you. It doesn’t hurt to have options while working on rebuilding your credit.
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!
For any questions or concerns, please don’t hesitate to contact us here!