Were you recently denied for poor credit car loans in Stoney Creek? There are a variety of different reasons why you were rejected; we will cover some of the most common ones.
How modern loan underwriting works
When applying for poor credit car loans in Stoney Creek, it does not go to an actual person for review.
However, once you fill in the blanks and check the box to perform a credit check, the lender has special software that will review all of your financial information and make an instant decision on whether to approve the application or decline.
If you are borderline, it will go to a person for additional underwriting.
This may seem informal, but these lenders have razor-thin margins and need to use this software to help them scale their operations.
Since you have poor credit, your application would be automatically rejected without further consideration.
What is the cause of your poor credit?
TransUnion offers a free credit reporting service, and you should sign up for it.
After you have signed up for the service, look at your credit report for any irregularities. Identity theft is a real problem, and this could be one of the reasons your credit score is low.
While you are looking at the credit report, if there are mistakes, you can dispute them, and they will be removed. Do not simply “ignore” these issues.
If the negative items inside your credit report are legitimate, you need to take responsibility for them.
Unfortunately, your credit report tracks all of your financial transactions for the last seven years, so these issues will haunt you for years to come.
Make a conscious effort to bring all of your past due accounts current; if you have a hard time keeping current with your obligations, consider signing up for pre-authorized payments, so you never miss a payment ever again.
Budgeting for the purchase of your new vehicle
You have done the necessary work to repair your credit; now, you just need to give it time.
Since you have time to spare, you should look at your budget to see if you have enough cash to service the car loan.
The average car payment in Canada is well over $500, and that doesn’t even cover fuel or maintenance.
Since lenders are being extra cautious, you should try to reduce some of your liabilities and increase your income.
Where to find poor credit car loans
There are websites that advertise the most competitive poor credit car loans, but sadly those websites are not the best choice.
Your best option when sourcing for a poor credit car loan is a local car dealership.
The dealership is able to shop around and find lenders that specialize in poor credit car loans.
While working with the dealership, they will help you rebuild your credit so you will be able to refinance your car loan in a year or two.
Now that you know what steps to take when trying to get a poor credit car loan, you should start applying before interest rates, and car prices rise even further.
Fill in the form below to get approved for poor credit car loans in Stoney Creek! 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.
For any questions or concerns, please don’t hesitate to contact us here!