If you need a car loan in Scarborough with bad credit, it can be difficult to find a lender willing to give you a chance. You can take some steps to help give you a fighting chance, but you must pay attention to them.
Understanding why you don’t have good credit
The first step is understanding why you do not have good credit. Next, you will need to access your credit score and report from both Equifax and TransUnion; when you have access to your credit report, you can begin reviewing it.
Look for any accounts that are either past due or in collections; if you have past due accounts, you need to bring them up to date as soon as possible.
While making sure all of your current debts are current, you should pay as much cash as you can to bring those accounts current.
Negative items on your credit report will stay there for up to seven years; the longer you leave those negative items in your credit report, the more time it will take for your score to recover.
When all of your debts are brought up to date, you should reduce the total amount of debt you are carrying.
One variable that impacts your credit score is your credit utilization rate; by paying down your debts, you are saving money on interest while boosting your credit score at the same time.
Reviewing your budget
It will take some time for your credit score to recover; while waiting for your score to rise, you can work on your budget.
Inflation is well over 5% in Canada, so you must allocate more cash towards your basic needs.
For example, after you have adjusted your budget, how much cash do you have leftover for a car payment?
The average car loan in Canada is well over $500, so you need to have enough room to cover that plus the running costs like insurance, maintenance, and fuel. If you do not have enough room to cover those expenses, you can trim some fat from your budget or take on additional jobs to boost your income.
How to find bad credit car loans in Canada
To find a bad credit car loan provider in Canada, you should contact your local dealership and find out what options are currently available.
The dealership works with a variety of different lenders, including those who offer bad credit car loans.
The dealership will have their in-house credit experts while shopping around for lenders that will give you a car loan.
These experts are going to present you with a tailored made credit rebuilding game plan, so you will never have to apply for a bad credit car loan again.
If you go through the dealership, you will have complete peace of mind knowing you are getting the best deal possible based on your unique financial circumstances, so contact your dealership today.
With each passing day, car prices are rising, and it is getting more difficult to secure car loans at competitive rates.
Fill in the form below to get approved for your next car loan in Scarborough with bad credit! we have a team of credit specialists ready to help you find a vehicle suited to your needs and will work with you no matter your credit score.
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