Tag Archives: bad credit car
Your Guide to Bad Credit Car Loan Financing
If you plan to get a car loan yet apprehensive because of your personal credit standing, a bad credit car loan is just what you need. Although consumers with a high credit score can get approved by any lending company, consumers who have bad credit history may find it a big challenge.
However, do not let your credit score set you back from acquiring a car loan with a good deal. Although bad credit car loans have higher interest rates than car loans for good credit, you still deserve to be treated with dignity and fairness. Do not predatory lenders take advantage of you just because you have poor credit rating. Below is a short guide on how to find the right bad credit car loan:
Explore your options. You can research online for potential car loan lenders. Many lending companies offer free pricing quotes from their websites so you can compare different bad credit car loan deals. You can use these quotes to do comparisons before making a final decision.
Check out car dealers. You can find car dealers that offer car loan financing, especially for consumers who are credit challenged. Dealers often use this strategy to increase their sales or to reach their sales quota for a certain time period.
Although you can try to get financed by a car loan dealer, you need to make sure that you will be dealing with a legitimate company. Some dealers may try to take advantage of a consumers poor credit standing by imposing high interest rates and fees. Before signing up for a deal, compare several potential dealers to find the best offer.
Check your personal credit report. Even though you are aware that you are credit challenged, its important to know exactly where you stand. Why, you may ask? Some lenders or car dealers may lead you to believe that you have a lower rating or that you cannot qualify for a lower interest rate because of your credit score.
Even with imperfect credit score, remember that you should always try to negotiate for a more affordable deal. Order a copy of your credit file from each of the three credit bureaus and bring a copy with you when meeting with a potential car loan lender or dealer. This way, no one can tell you differently about your personal credit rating.
Use the loan to rebuild your credit. While this may not be the best time to apply for a car loan because of your credit, you can make the most out of the situation by using your bad credit car loan to improve your credit score. This can be achieved by being timely with your payments from the beginning until the completion of your loans term.
Aside from your car loan, make sure that you maintain a good record or impressive payment history with other creditors. After six months or so, check your credit report to see your progress. Through consistent payment, you can surely improve your credit one payment at a time.
Are you looking for Car Loans in Canada?
It was a time when getting a loan was too difficult a task. But with advancement in technology and new strategies been applied into the service industry, getting a loan is no big a deal now.
There are several companies that will offer you auto loans. There are many companies today that also offer the loans using their online applications. The traditional approach requiring the applicant to complete an intimidating stack of documents to establish your credit status has been replaced my by the easy to complete and far less intimidating online application. Many organizations understand your situation and specialize in providing approve car loans for people with bad credit, low credit, slow credit or no credit. No matter if you are a bankrupt or new to country, companies have an option to give you auto loans. Now you can fulfill your dream to put your new car on the roads.
Moreover, getting a car loan is a good way to rebuild credit. Despite the potential pitfalls involved with bad credit car loans in Canada, these loans, if paid on time will help in rebuilding credit after bankruptcy and will do much to improve your credit and make future borrowing easier. Bad credit Car loans generally involve less financial risk for both the lender and borrower than a home mortgage, yet they still give the borrower an opportunity to make installment payments in order to prove their ability to pay over time. With this, many have been able to claim that “a car loan improved my credit score”.
Also, it is no more time-consuming these days. All these happen in quick time without any hassles. There are companies like www.carloanscanada.com that offer you a easy to complete credit application and credit specialists that will focus on not only getting you a bad credit car loan in Canada but, will also match you up with the best rate and terms available often requiring no down payment.
You have to see how financial fit you are. You just need to set up your goals and work on it. You may use the Canadian Car Loan Calculator to estimate your monthly payments, whether you want a lease or a loan. Use this loan calculator to find out what you can spend on the car of your dreams. You may use the Budget Calculator to figure out and manage your budget and finances.
Car loans have never been so easy and fast!