Canadians with bad credit know just how difficult it can be to get a car loan. If you applied for a car loan and were rejected, don’t give up.
We are going to give you the information you need to make the right decision and drive home in a new car today.
Do you know why you have bad credit?
This is not a rhetorical question; most Canadians received little to no financial education in school, so most of us don’t understand credit scoring and how it can impact our financial well-being.
The first step is getting access to your credit report, so you can see where things stand. You don’t have to spend money to access your credit report and score; Credit Karma is an app that will let you access your TransUnion report for free.
When you have access to your credit report, you can look at the account details and make a note of any accounts that are either past due, in collections, or some other derogatory statement.
You need to move these accounts to the top of your “to-do list”.
Look at your budget and try to find additional money you can earmark for these accounts. By bringing these accounts up to date, your credit score can start to improve.
If you don’t have any accounts that are past due or in collections, then you could be carrying too much debt.
Having a high credit utilization rate is another potential cause of your low credit score; make it a top priority to pay down these debts as soon as possible.
Budgeting for inflation in 2022 and beyond
You’ve looked at your credit report and taken the necessary steps to improve your score. It will take some time before your credit score begins to improve; now you can shift your attention to your budget.
Inflation and rising interest rates mean your money is losing buying power on a daily basis. You should go through your budget and look for savings by cutting out services that you don’t use.
Cutting out cable TV is a great way to save a hundred dollars or more per month; besides, most of the content you watch is found online.
Where to get a car loan approved with bad credit
The only viable option you have if you need a car today is to go through a dealership in your area.
These dealerships are going to invest time to understand you and your financial situation better. Then, the same dealership will discuss your situation with their lenders and devise a plan that works for everyone.
So long as you are not in any type of bankruptcy or consumer proposal agreement, you will get approved for a car loan, but you need to call the dealership now and start discussing your next steps.
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!