Financing a Car Loan in Burlington with Bad Credit

Financing a Car Loan in Burlington with Bad Credit

Posted by on Feb 09, 2022 - Archived under Uncategorized

If you need to finance a car loan in Burlington with bad credit, you are in luck. We are going to take a pragmatic approach to this situation and show you how to get a poor credit car loan. Even if you applied for a car loan and got rejected, these tips are going to help.


What is your credit score?


Have you recently filed for bankruptcy or a consumer proposal? If you filed for either of these, there is nothing we can do to help because the law prevents anyone who is insolvent or under a consumer proposal from taking on new debt.


If you are not in either of those situations, then please continue reading.


You need to assess your current financial situation; what is your credit score? If it is under 620, you are considered subprime; the average credit score in Canada is around 660. To get the best interest rates in Canada, your score needs to be in the 700 range.


Your credit score can recover, but you need to deal with the source of the negative score. Look for any accounts that are past due; when you have identified those accounts, you must bring them up to date.


If these accounts fall into collections or are “charged off as bad debt,” it will stay on your credit report for up to seven (7) years.


Once your accounts have been made current, your credit score is going to start improving. Chances are you are carrying excess debt, so try to allocate additional funds to pay down those debts.


Making room in your budget for a new car


While you wait for your credit score to bounce back, you can start working on your budget to make room for a new car payment. The average car payment in Canada is around $500, so you should budget around that amount to be on the same side.


You will be paying a higher interest rate on the car loan in Burlington with bad credit, so you will reduce the total amount of money you can borrow. Most people with poor credit cannot buy a brand new car and will need to get a previously owned vehicle.


There are great quality used vehicles for sale; most of them come with a warranty, so you will have peace of mind.


Picking the right dealership


There are many dealerships that will have used cars for sale, but you need to select those that can help you get a poor credit car loan. You can identify those dealerships by focusing on those that advertise “no credit refused.


These dealerships will have relationships with poor credit car loan providers and can negotiate terms on your behalf.


Keep in mind that your car loan in Burlington with bad credit is classified as high risk, so you are going to pay a higher interest rate to secure the loan.


After a year or two, once your credit is in the 700 range, you can refinance your current car loan or flat out buy a brand new car. Anyone can fall on hard times and have poor credit, but you can turn your life around for the better.


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! 


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