Canadians looking for bad credit car loans with low income must move quickly before they are unable to get a car loan. We are not using scare tactics to try and give you anxiety. There are many different variables that are impacting the entire automobile industry throughout Canada and North America, as our Guelph auto loans team explains.
Rising interest rates
The Bank of Canada is has raised interest rates in early 2022, and according to their latest updates, they are taking an aggressive stance to try and slow inflation.
If you noticed that the prices of food, gasoline, and just about everything else have gone up, you are not alone.
Central governments around the world printed money to try and keep people fed and the economy going.
While it provided short-term relief, the downside is inflation which is reaching dangerous levels if left unchecked.
The only way that the Bank of Canada is able to slow inflation is by increasing interest rates.
This increase drives up borrowing costs which should slow inflation, but it could take 6-12 months or longer before we start to experience any relief.
We have a challenging time ahead, but there is an opportunity to get a good car loan; even with poor credit but you need to move fast.
Taking a closer look at your credit profile
Before you can move forward and buy a car, you should look at your credit report. You can get free access by signing up with TransUnion and Equifax.
You could have a poor credit score with Equifax but a fair score with TransUnion or vice versa; each agency uses its own proprietary scoring system, so you must review both reports.
If you find any incorrect information inside your credit report, you must have it removed as soon as possible. Inaccurate, negative items will bring down your credit score, which makes getting a car loan more expensive.
The law requires that these errors be removed, but you need to dispute the errors through pre-established channels.
This would be an ideal time to work on repairing your credit by paying off any accounts that are past due; if you have missed a payment, even a single one, it can bring down your credit score.
By focusing on keeping your payments on time, all the time, your credit score will climb. In addition, it would be smart to keep the total amount of debt you are carrying.
The less debt you have, the less money you will spend on servicing that debt.
Where to find bad credit car loans with low income
You cannot find a poor credit car loan online; the lenders that specialize in that type of financing do not advertise online.
Instead, contact your local car dealership; they will already know which lenders offer the best poor credit car loans in Guelph.
The dealership will be able to get you approved for the car loan and can show you how to repair your credit score.
Interest rates are going to rise very fast, so you need to contact the dealership today and start exploring your loan options before time runs out.
Fill in the form below to get approved for bad credit car loans with low income! we have a team of credit specialists ready to help you buy a car 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!