Were you recently rejected for a car loan? Unfortunately, having bad credit can turn something positive, like buying a new car, into an ordeal.
Our goal is to show you how you can still get a car loan with bad credit, plus work on rebuilding your credit. If you follow the suggestions, your car buying odds will improve substantially.
Assessing your financial situation
While you need a vehicle, you must ask yourself whether you can afford it? This is a tough question but one that only you can answer.
If you are not sure how to determine what you can afford, the median car payment in Canada is anywhere from $300-$800, depending on the type of loan.
Make a Budget
If you don’t have a budget, it is almost impossible to know where all of your money is going. You don’t need anything sophisticated to prepare a budget; you can download one from the Government and simply fill in the blanks.
You need to allocate some funds towards an emergency fund. The pandemic has taught us that economic hardship can happen at any time, and you need to have some cash stashed away to meet those shortfalls.
It may seem impossible now to have an emergency fund, but you will be able to build it over time.
When you have the budget in place, it would be a great time to start paying down your debts. Of course, the best debt to have is no debt at all, so do everything you can to reduce the amount you owe.
Remember, you didn’t end up in debt overnight, so you cannot expect to get out of debt in a day, pace yourself, and you will start to see things improve.
Working on rebuilding your credit
Once your budget has been worked out, you can now begin working on rebuilding your credit. There is no shame in having credit issues; over 50% of Canadians are less than $200 away from insolvency.
While there is no way to change the past, you can work on improving your credit score going forward; start by identifying which accounts, if any, are overdue.
Having overdue accounts is the worst thing you can do when trying to boost your credit, so bring those accounts up to date. Rebuild your credit and you’ll never get rejected for a car loan!
You are not in this alone
You may feel isolated and alone after you get rejected for a car loan, but you are not alone! There are lenders that will give you a car loan; however, you need help to find the right one. Our experience is that the best way to find these loans is with the help of a car dealership.
It can’t just be any car dealership, though; you must go through those that focus on helping customers with second-chance financing.
These dealerships know that hard times can happen to anyone and want to help you get behind the wheel of a reliable car. These dealerships have experts on staff that can help you get a car loan and rebuild 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!