Blog

Bad Credit Car Loans in Stoney Creek - 2022 Guide

Bad Credit Car Loans in Stoney Creek – 2022 Guide

Posted by on Jan 21, 2022 - Archived under Uncategorized

If you are having a tough time accessing bad credit car loans in Stoney Creek, our auto loans team are here to help you get the car you need.  

 

To some people, a car is a luxury but if we are being real, you “need” a car in Canada.  

 

It is virtually impossible to lead a normal life relying on public transit and ride-sharing services like Uber, which are only available in major metropolitan areas, if you are in rural Canada, you either have a car or you don’t live. 

Car prices are rising faster than incomes 

 

The prices of new and used cars are climbing by leaps and bounds. In the past, if you could not afford a new car because of bad credit, you had the option of buying a used car with cash but that is no longer the case, you need financing. 

 

Accessing Bad Credit Car Loans Stoney Creek  (Subprime)

 

Subprime is a word that carries a lot of negative baggage from the 2008 subprime mortgage crisis that spread from America throughout the world. 

 

In Canada, our lenders are more responsible and we do not have a subprime bubble like the mortgage bubble that happened south of the border. 

 

The term subprime just refers to any person who has a credit score below the median average, which in Canada, is somewhere around 650.  

 

You should routinely check your credit score with apps like Credit Karma, it is free and helps you stay on top of your finances. 

 

How to qualify for Bad Credit Car Loans in Stoney Creek

 

With banks and major financial institutions, they use a cookie-cutter approach, where they approve or reject an application based solely on the credit score. This model works for them because they work with a huge volume of loans and can borrow money from the Bank of Canada. 

 

Subprime lenders take their time to learn about each borrower and use a more personalized approach. These subprime lenders are not allowed to borrow from the Bank of Canada, so they are forced to raise capital from other markets at a higher rate.  

 

Since the subprime lenders need to raise capital at a higher interest rate, those costs are passed on to you. 

 

The subprime lender will also need to charge a higher interest rate to cover their overhead and added risks associated with these loans. 

 

How to find subprime car loan providers in Stoney Creek 

 

You can only access these subprime lenders by going through a car dealership that works extensively with these lenders.  

 

The dealership will have a longstanding relationship so they can explain why the lender should approve your loan. This same dealership can help you structure your car loan, so after a few months when your credit score improves, you can refinance the car loan to something lower. 

 

You can get approved for bad credit car loans in Stoney Creek and get the car you need, but it all starts with you picking up the phone and calling the dealership to discuss your car financing options. The sooner you get your loan approved, the sooner you will be able to enjoy life on your terms. 

 

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! 

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!  

Dixie Auto Loans