How to Buy a Car With Terrible Credit: 5 Easy Steps

How to Buy a Car With Terrible Credit: 5 Easy Steps

Posted by on Dec 05, 2022 - Archived under Uncategorized

Canadians have options available to them that let’s them buy a car with terrible credit, but you need to pay close attention to these tips.

Understanding The Root Cause of Your Bad Credit


The first thing you need to understand is why your credit is bad. You will need to explain to the prospective lenders, did you lose your job due to a pandemic, health issues, or a relationship breakdown?


how credit score is calculated


By having an explanation, you are demonstrating your maturity and desire to take responsibility for your financial future. Not every lender will accept your explanation or grant you credit but at least you will be able to answer their questions.


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.


Credit Utilization Rate Experian


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


What is Your Income Situation?


Do you have a stable job and have been on the job for at least 90 days? Lenders understand that everyone has credit issues at some point in their life, and while having a good credit score is important, lenders want to know if you can repay the loan.


If you have been on your job for more than 90 days and passed the probationary period, then you stand a good chance of meeting the income verification requirement.


Getting Help From Credit Experts


You will need to get help from credit experts in your area to buy a car with terrible credit. Call your local car dealership and schedule a meeting with one of their credit experts.


The experts will review your credit report and go through everything line by line. If there are mistakes inside the credit report, the expert will be able to help advise you on how to dispute these mistakes.


Aside, from disputing the mistakes. These experts can also show you the easiest way to improve your credit score. You might see credit repair promotions online, these firms ask for money upfront but promise you virtually overnight credit score improvements.


There are ways to boost your credit score but don’t waste your money on these services, instead stick to the advice given by the local car dealership.


Picking the Right Car for Your Budget


Once the dealership has reviewed your credit and finances, they will be able to find out how much of a car loan you can qualify to receive. After you have the budget defined, you can then start looking at the different cars that are available at the dealership.


When selecting a car, it helps to do a little homework on them to determine which one has the most positive reviews. The reviews you find online do help with creating a shortlist but you still need to take the car for a test drive.


Test driving a car is the only way to know with certainty whether it is the right one for you. There is a sacred bond between car and driver, and the test drive is where this bond is formed. While we may seem a little dramatic, there is no feeling like being able to come and go as you please with your car.


By getting help from a reputable local dealership, you will be able to buy a car with terrible credit score.


For those of you who want to buy a car with terrible credit, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!


Dixie Auto Loans