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How to get a Car Loan in Halton Hills with a 400-Credit Score

How to get a Car Loan in Halton Hills with a 400-Credit Score

Were you recently turned down for a car loan? Having a credit score in the 400s can make your car-buying experience a truly challenging one.


The goal of our Halton Hills car loans team is to show you what steps need to be taken in order to get back on a solid financial footing while still being able to buy a car.


We need to start from the beginning


Well, we don’t need to go back to when you were born, but we need to go back to when you started having credit issues.


The fact that your credit score is in the 400s indicates there are some structural issues with your finances that need to be worked out.


  • Sign up for the free credit monitoring services being offered by TransUnion and Equifax. Now that you are able to access your credit reports, you should look for any accounts that are either in collections or seriously past due. When an account is past due, your credit score will take a hit, but you can bounce back. Once the account is in collections, you still need to pay it off; no lender is going to approve your car loan until those collections are paid off.
  • Bring all of your existing accounts up to date while paying down your existing debts if you are carrying a large amount of debt and do not have much credit available. Your credit utilization rate needs to be lower than thirty-five percent.
  • Tightening your belt, you need to revamp your budget to determine how much cash you have available to service your existing debt plus the proposed car loan. The average car loan in Canada runs just over $500 per month, don’t forget insurance, gas, and maintenance, which need to be added to your budget.


How to boost your income if you are carrying too much debt


The pandemic has changed the way we work; the work-from-home or hybrid model is becoming more common. You should consider augmenting your income by taking on another job.


If you are currently working full-time, perhaps spending a few hours on the weekend driving Uber or Door Dash will help give you an infusion of cash.


By making an effort to get out of your comfort zone, you should be able to turn your finances around.


Where to get a 400 Credit Car Loan in Halton Hills while you Rebuild Credit


You have taken the necessary steps to improve your credit, but it will take a few months before you start to see progress, so what can you do now to get a car loan?


The best and frankly only viable path forward is to enlist the help of a local car dealership.


With a credit score in the 400 range, you will not qualify for a brand-new car loan, but the dealership can get you approved for a used car loan.


The interest rate on the loan will be high, but you can refinance the loan in a few months once your credit score has improved.


This is the most direct path to success; you just need to contact your neighborhood dealership today and get things rolling.


We’d love to help you find a 400 credit car loan in Halton Hills. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Brantford dealership. 


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