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The Best Bad Credit Car Loans in Stoney Creek

The Best Bad Credit Car Loans in Stoney Creek

You don’t need us to tell you how challenging the past 18 months have been. We have all lived through unprecedented times and have emerged in various states of financial and mental health. If you find yourself facing difficult times, you can always rely on bad credit car loans to help. Our Stoney Creek explains how to get one.

 

Bad credit car loans in Stoney Creek

 

Bad credit car loans are useful for financing a new car even when your credit score has taken a hit. No matter how bad the credit score, this type of loan can help.

 

Here’s how to get one.

 

Address the issues that dropped the score

 

Depending on your situation, the first task is to take care of the situation that dropped your score in the first place. Whether that was missing a payment, unemployment, redundancy, illness or something else.

 

Lenders will look much more favourably on an application from someone who has taken charge of their situation.

 

Save for a down payment

 

Down payments also go a long way to helping an application for a bad credit car loan.

 

The more you can save, the lower the loan amount and the higher your chances of being approved.

 

Lenders love down payments as it insulates them from loss. They know that you have money at stake too so are less likely to default. They also know that if they have to repossess the car, they would lose less because of that down payment.

 

Pay down debt as much as possible

 

If your credit score dipped because of debt, now is as good a time as any to begin repaying it. The more you can pay down, the less it will impact any future lending decision.

 

Lenders need to consider affordability and if you’re carrying too much debt, that can impact a lending decision.

 

Start improving your credit score

 

It’s never too early or too late to improve your credit score. Paying down debt and tackling the initial cause of the drop will help.

 

So will setting up automatic payments for all outgoings so you never miss a payment. Paying down credit cards, reducing debt, creating emergency savings, having utilities and rent entered onto your credit report will all help too.

 

The bad credit car loan will also help improve your score once the initial dip from the loan has passed. The regular payments help build your payment history, which will increase your score over time.

 

We’re not going to pretend rebuilding credit is quick or easy, because it isn’t. Not everyone is going to have the resources to save, pay down debt and save for a down payment all at once.

 

Lenders get that too. As long as you look as though you’re in charge of your situation and are in control, they should still look favourably on an application for a bad credit car loan.

 

When you’re ready for a car lease or loan, get in touch with the Stoney Creek auto loan experts at Northway Ford for great deals on auto finance.

 

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Categories: Car Loan

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