How to Find a Bad Credit Car Loan in Brantford

How to Find a Bad Credit Car Loan in Brantford

Posted on February 8, 2022

We need credit for just about every major buying decision in our life, whether it is buying a home, applying for specific high-level jobs, or in this case, purchasing a car. If your credit is weak, it drives up the cost of borrowing, which makes life harder than it needs to be.

If you have weak credit and need to buy a car, our Brantford auto loans team will help you qualify for a competitive car loan.

While these tips are designed to help buyers in Brantford, they can be followed by anyone in Canada.

Assessing your credit

The first thing we need to do is review your credit report to understand the cause of your weak credit. Sign up for free access to Equifax and TransUnion.

You could have a good credit score with Equifax but a bad report with TransUnion; the only way to know with certainty is to access both.

While reviewing the credit reports, note which accounts are overdue or in collections. You need to keep all of your accounts up to date if you want to have a good credit score.

Your payment history is the biggest influencer of credit scores, so always pay your debts on time.

Once your accounts are brought up to date, your score will begin to improve, and over the course of three to six months, you should notice a substantial uptick in your credit score.

Do you have sufficient room in your budget?

After you have addressed the causes of your weak credit, you need to look at your budget to make sure you can afford to take on additional debt.

At the time of publishing this article, the average car payment in Ontario is roughly $500, but you also need to budget for insurance and other running costs.

To determine whether you can afford a new car, you can use forty percent of your gross income as the maximum amount of debt you can service (factoring in the new car loan).

If the new car loan exceeds this limit, you should consider trimming some other expenses from your budget.

Finding the right weak credit car loan provider in Brantford

While you are waiting for your credit score to improve, you can still get a new car today. In fact, you should get a car soon before the vehicle shortage gets worse, and there won’t be any viable options available.

To get a competitive weak credit car loan, your best option is going through a local dealership. The dealership has access to all of the weak credit lenders in Canada and can get you approved for a loan even if your credit isn’t strong.

The dealership is able to help you find a car that is suitable for your budget and needs, which saves you time.

During your initial conversation with the dealership, they can structure your car loan so you can refinance it in 6-12 months when your credit score has improved.

You need to contact the dealerships soon, though, before interest rates start to rise.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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