Bad credit car buying strategies that work in Canada

Posted by on Aug 23, 2022 - Archived under Bad Credit Car Loan Tips

Do you have bad credit? Don’t worry; you are not alone, and it is not a character flaw; a bad credit score just means that, for some reason, you were not able to keep your financial commitments.

We are going to take a deep dive into how to get a car loan in Canada with bad credit; more importantly, we are going to show you the steps you need to boost your credit score, so you never have to contend with these challenges again.

What is the root cause of your low credit score?

Before you can work on improving your credit score, you need to understand what is the cause of the low credit score.

You can access your credit score for free by signing up with Equifax and TransUnion. These services are free, so you don’t need to pay for anything, and you should make it a habit to always monitor your credit score.

Red flags to look for in your credit report

There are some red flags you should be on the lookout for in your credit report. Start by looking for any accounts that are in collections.

Accounts that are in collections are seriously overdue and causing the greatest amount of damage to your credit score.

While ensuring you are making all of your current payments on time, you should work on bringing the accounts in collections up to date.

This will take a tremendous amount of discipline on your part, but it will be worth it when your credit score starts to recover.

If you are not sure how much cash you can put towards this debt, now would be an ideal time to draft a budget so you know precisely how much cash is coming in and going out.

While some people consider a budget as something complicated, it is pretty simple to do, and you will feel empowered once you know where things stand.

How to get approved for a car loan today with bad credit

You are taking the necessary steps to improve your credit, but you need a new car today, so you are probably wondering if you can get approved for a car loan with bad credit.

The short answer is “yes,” but you need to go through the proper channels

To get approved for a car loan with bad credit, your only viable option is to work with a car dealership in your area.

The local dealership will have access to lenders all over Canada and will know which lenders provide loans to borrowers with bad credit.

When you go through the local dealership, they can also help show you the quickest and easiest way to raise your credit score, so after 6-12 months of making your car payments on time, you can secure a prime interest rate car loan.

If you need a car today and have bad credit, then you must contact your local dealership ASAP. This is something that cannot wait; with each passing day, interest rates are rising, so you need to move fast.

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