If you have bad credit and need to buy a car, 2022 has a unique set of challenges you will need to overcome.
We are going to cover what essential steps you must take, so you can get the car you need at payment terms you can live with.
Crash course in how credit works in Canada
The majority of us are not financing majors, so we can be forgiven if we don’t understand the finer nuances of how credit works.
In a nutshell, your credit score is a 3-digit number that indicates how likely you are to repay your debts as agreed.
Credit scores can range from 300-900; the higher your credit score, the less likely you are to not keep your commitments and therefore have access to the best interest rates.
Bear in mind that lenders are in the business of selling money in the form of loans that charge interest.
These lenders want to get paid back in full as agreed and will come up with enticing offers to get the most creditworthy borrowers.
You are considered to have bad credit if your score is under 600, so you should sign up for free apps like Credit Karma and find out whether your credit is as bad as you think it is.
No matter what, going forward, you need to keep track of your credit score, so you are never caught off-guard when you need to apply for a loan or to rent an apartment in the future.
How to repair the damage that was done
Now that you have access to your credit report, you should start looking for the causes of your low credit score.
Are there any accounts that are past due? If they are, while still keeping current on your existing obligations, start making payments to bring these past due accounts current.
It can seem like a major challenge, but the benefits over the long run are well-worth it.
It can be difficult to find room in your budget, but it needs to be done as soon as possible.
A low credit score makes your financial life more difficult than necessary, so do everything in your power, even if you have to take on a second job or side hustle to get the cash needed.
Where to get approved today for a new car loan?
We get it; you need a car today and can’t wait for your credit score to improve over time. What you should do is contact your local car dealership, those that specialize in helping credit-challenged Canadians just like you.
When you have identified those dealerships, head over and begin exploring your options with them.
The dealership will have credit experts available that can look at your credit report and let you know what specific items need to be addressed, so your credit score improves rapidly.
The same dealership can get you approved for a car loan today, but you need to reach out to them and get the process rolling. With car prices rising, you need to take the initiative and reach out to the dealerships 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!