Anyone who wants to buy a car with bad credit will need to move fast, the days of easy credit are limited, and soon, even people with good credit are going to have a tough time getting a car loan.
If you stick with us until the end of this discussion, you will be able to get a competitive car loan based on your situation, so let us begin.
Why do you have bad credit?
Before you buy a car with bad credit, prospective lenders are going to want to know the cause of your credit issues. For example, did you lose your job due to the pandemic, or were there some extenuating circumstances?
In addition, you need to take responsibility for your finances. By understanding the root cause of your credit issues, you can explain the reasons to potential lenders and how you plan never to have those issues again.
Start the process by accessing your credit scores for free; you can access them by signing up with TransUnion and Equifax.
Your credit report lists all of your financial relationships. Whether they are in good standing or not, your credit score is a three-digit representation of how responsible you are with your finances.
Credit scores range from 300 to 800; if your score is over 720, you would have access to the lowest interest rates on all loans.
You could be forced to pay interest rates well over 20% with bad credit, so you need to start rebuilding your credit score.
How to rebuild your credit score
You may be tempted to try and take a shortcut by signing up for credit repair services being touted online. Do yourself a favor and skip those services; while the offer may seem like a good deal, there are no shortcuts when it comes to rebuilding credit.
If you follow the best practices, then your credit score will surely improve.
One of the key things you can do is pay off any accounts that are in collection or past due. You may be forced to dig deeper into your budget, but it is worth the effort.
Once you have paid off the collections, your credit score will begin to improve over time; plan on spending 3-6 months for your credit score to show a substantial improvement.
While you are working on repairing your credit, if you need a car right away, there are lenders who will give you a loan, but you won’t be able to find them online.
Where to find bad credit auto loans in Canada
To access competitive bad credit auto loans in Canada, you need help from a local car dealership specializing in providing this type of financing.
The dealership will know which lenders in Canada provide competitive car loans based on your finances. While this approach takes time, you will get a new car and start leading your best life.
Interest rates are going to start rising in no time, especially with inflation tracking uncharted territories, so you need to contact the dealership right away.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you buy a car with bad credit suited to your needs and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!