Best way to buy a car with terrible credit

Posted by on Jul 15, 2022 - Archived under Bad Credit Car Loan Tips

If you live in Canada and have bad credit and need to buy a car, you don’t have many options (aside from hitting the 6/49). We’ll help you make the most of the ones you do have so you can come out on top.

First of all, you need to know that the Internet is a great place to do research, but you won’t find the money you need there. We’ll show you where to look for that in a moment.

Figuring out why you have bad credit is important

Before you can fix the problem, you need to figure out why you have bad credit in the first place. The first step is to sign up for a credit monitoring service like Koho and get your credit report.

Now that you have live access to your credit report, take a few minutes to look over each account and make a note of any mistakes. If there are mistakes, your credit score will go down.

The easiest way to fix mistakes on your credit report is to contact your credit reporting agency, whether it’s TransUnion or Equifax, and use their official way to dispute your credit report.

After the notice is sent, it could take up to 30 days for the mistakes to be taken off of your credit report.

How to improve your credit rating

Now that you’ve taken care of the mistakes that are dragging down your credit score, it’s time to focus on what you can do to raise it.

From now on, you should always pay your debts on time, even if it puts a huge strain on your finances. If you don’t pay a bill on time, it will hurt your credit score for months. You should do everything you can to keep your promises.

Reduce how much debt you have on your credit cards and other lines of credit. If you use more than 30 percent of your available credit, it will hurt your credit score.

By doing these simple things, your credit score will start to go up, but you still need to do more.

Making the most of your hard-earned income

Even if you have bad credit, you can still get a car loan if you are working on fixing it and have a good income.

To show that your income is enough, you will need to make sure that it can cover all of your current expenses plus the proposed car loan. The magic number is 40% of your gross income.

Where to get a car loan if you don’t have good credit

If your credit isn’t great, the best place to get a car loan is from a local dealership. These local dealerships have the largest network of lenders in all of Canada.

They can negotiate with the lenders to get you approved, even if other lenders have said “no.”

If you’re serious about getting a new car, you should call your local dealership today and start the process. It will be the best call you’ve made today.

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!

Let’s get in touch! 

Dixie Auto Loans