If a Canadian needs a new car but has bad credit, they should act quickly before they can’t get a car loan.
We aren’t trying to scare you, just present you with the facts. There are a lot of different things that are affecting the whole auto industry in Canada and North America.
Interest rates are going sky high!
The Bank of Canada raised interest rates at the beginning of 2022, and their most recent news shows that they are taking a tough stance to try to slow inflation.
Central governments all over the world printed money to try to keep people fed and the economy going.
This helped in the short term, but now inflation is getting to dangerous levels if nothing is done to stop it.
The only thing the Bank of Canada can do to slow down inflation is raise interest rates. This raises the cost of borrowing money, which should slow down inflation, but it could be 6–12 months or longer before we start to feel better.
We have a hard time ahead of us, but there is a chance to get a good car loan even if you have bad credit. You just have to move quickly.
Looking more closely at your credit report
You should look at your credit report before you go ahead and buy a car. If you sign up with TransUnion and Equifax, you can get free access.
You could have a bad credit score with Equifax but a fair score with TransUnion, or vice versa.
Each agency has its own scoring system, so you need to look at both reports.
If your credit report has wrong information, you need to get it taken off as soon as possible.
Bad things that aren’t true will hurt your credit score, which will make it more expensive to get a car loan.
The law says that these mistakes have to be fixed, but you have to go through the right channels to do so.
Now would be a good time to work on fixing your credit by paying off any accounts that are past due.
Even missing one payment can lower your credit score. Your credit score will go up if you make sure to always pay your bills on time.
Also, it would be smart to keep track of how much debt you have. The less debt you have, the less money you will have to pay to keep it paid off.
Where to get a car loan in Canada if you have bad credit
Online, you can’t find a loan for a car if you have bad credit because lenders who offer this type of loan don’t advertise online.
Instead, talk to a car dealer near you. They will already know which lenders in Canada offer the best car loans for people with bad credit.
The dealership will be able to get you approved for the car loan and show you how to improve your credit score. Interest rates are going to go up very quickly, so you should call the dealership today and start looking into your loan options before time runs out.
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!