If you applied for a car loan at a local bank and had the application rejected, you still have options. The banks are very conservative when issuing car loans, and there is a good chance that no one actually reviewed your application. In any case, we’re going to show you how to find a fair priced car loan after bank denial in Oakville.
Most lenders rely primarily on credit scores and artificial intelligence
The majority of lenders rely on running credit scores through artificial intelligence software; this software will make a decision on whether or not to approve you for a car loan.
It sounds cold and cruel, which it can be, but it is how these companies are able to process a large number of applications without hiring more staff.
To qualify for a bank car loan at the most competitive interest rates, your credit score should be over 720. You can check your credit score by going to TransUnion and Equifax; there is no cost for this service.
If your credit score is under 720, you can still get a car loan after bank denial, but you will need to find a lender that takes a more “hands-on approach.”
Addressing your credit issues
The median credit score in Canada is 660, so if your score is below that average, then you need to start working on rebuilding your credit score.
There are a few common reasons why a person will have a low credit score, one of the most common reasons is for not making their payments on time.
Missing a single payment will bring your score down, and that will stay on your credit report for up to seven years.
Another common cause of low credit scores is errors inside your credit report. These errors can happen for a variety of reasons, and they will have long-term consequences if not addressed. This is why you need to keep on top of your credit at all times.
Finding room in your budget for a new car
Something you need to do is work out a budget for the new car if you haven’t already worked out the numbers. Inflation currently tracking 5% per month is taking a bite out of your buying power.
You need to allocate enough money to cover the loan and also the added costs that come with owning a car. If you do not budget properly, you could get yourself into financial hardship.
Finding sympathetic lenders
Since the banks said “no,” your next step is to contact your neighborhood dealership and book an appointment with them.
The dealership will be able to get you approved with lenders that specialize in bad credit car loans. You will pay a higher interest rate, so you may not be able to buy a brand-new car, but you will be able to get a good quality used car.
The dealership will also show you how to improve your credit so you can get a better car loan in the future. So, there is hope for Canadians with credit issues who want to buy a new car, but you need to reach out to the car dealership immediately.
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!
Click here to get approved for your next car loan after bank denial online today! we have a team of credit specialists ready to help you easily buy a car with low credit score, and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!