Bad Credit Car Loans in Waterloo Ontario: Get Pre-Approved

Bad Credit Car Loans in Waterloo Ontario: Get Pre-Approved

Posted on May 2, 2022

The average Canadian is having a tough time keeping up with living expenses; inflation has driven up costs by 5.7%, and everything from gas to food and housing is more expensive.

If you need to buy a car and have poor credit, it can seem like an impossible task.

Fortunately, our Waterloo car loans team are going to show you how to get a loan and start leading a better quality of life.

What is the cause of your poor credit?

Before you can repair your credit score, you need to understand the cause of the problem.

You should sign up for free services like Credit Karma. These free apps give you direct access to your credit report and can also suggest credit products to meet your unique needs.

Once you are able to access your credit report, you need to find the accounts that are dragging down your credit score.

Do you have multiple accounts or just one?

A potential reason for your low credit score is carrying too much debt. Suppose you are the type of person who carries a balance but only makes the minimum monthly payment. In that case, it will negatively impact your credit score.

While you are paying your bills as agreed, your credit utilization rate goes up when you carry too much debt, which brings down your credit score.

As a general rule, you should not carry balances that are 30% or more of your available credit limit.

If you have any unpaid collections inside your credit report, pay them off no matter how old they may be.

No lender is going to approve a Waterloo car loan if you have unpaid collections inside your credit report.

Preparing a budget

If you do not already have a budget in place, you should draft one.

There are people who feel intimidated when they hear the word “budget”, but you have nothing to worry about.

This is just a document that outlines all of your income and expenses.

By creating a budget, you will know precisely where every dollar is going. After you have worked out your budget, the cash you have leftover is what can go towards your car loan.

This amount is very helpful since the average car loan in Canada is just over $500 per month.

How to get an auto loan in Waterloo with poor credit

The best way to get an auto loan in Waterloo with poor credit is with the help of a car dealership.

These dealerships will spend some time getting to know you and your personal circumstances; once the dealership understands your needs, they will find a lender that is willing to give you a car loan at a fair interest rate.

The dealership is going to show you what steps must be taken to boost your credit score, so you will be able to access more competitive car loans in the future.

Without the help of these dealerships, the chances of you getting a car loan are virtually zero.

So, you should contact your local Ontario car dealership right away and begin reviewing your car loan options.

We’d love to help you find an affordable Waterloo car loan with bad credit. 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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