Finding a Great Cambridge Car Loan with Bad Credit

Finding a Great Cambridge Car Loan with Bad Credit

Posted on January 13, 2022

If you don’t have good credit, it makes life harder than it needs to be. The interest rate for car loans in Cambridge is very low, but if your credit is bad you are going to pay a premium just to be able to have a car.

Skyrocketing car prices

Retail prices for new and used cars have been climbing and this trend shows no signs of slowing down. With each passing month, the cost of buying a car increase.

Along with the higher price of buying the car, you also need to take into consideration the running costs.

Most prospective car buyers just focus on the monthly payment without thinking about insurance and fuel costs. Fuel prices are on the rise, so you need to factor that into your budget.

Interest rates are rising

While interest rates have been low for quite some time, the Bank of Canada has indicated they are going to start raising rates in 2022. As interest rates rise, it drives up the borrowing costs associated with buying a car.

How bad credit auto financing works

We have established that interest rates and car prices are on the rise. Since you have bad credit, you have to work really hard if you want to get a car loan approved.

You shouldn’t even bother with conventional lenders. They will just reject your application. It would be smart to reach out to subprime car loan providers in Cambridge.

We will show you how to find them later on.

Credit and car loans in Cambridge

To qualify for prime auto rates, you need to have a credit score that exceeds 680.

The average credit score in Canada, is around 650. Anything under 620 is considered subprime. When was the last time you checked your credit score? You should make it a habit to check it at least once a month.

Do you know why you have bad credit? A common reason is not paying your bills on time, but were you a victim of circumstance?

If you lost a job due to the pandemic or had health issues, while it does not excuse your bad credit score prospective lenders will appreciate you taking responsibility for what happened.

Is your income stable?

Having bad credit can make getting a Cambridge car loan difficult, but if you have stable income your odds of getting approved will improve dramatically.

If you are working a conventional job, then you should have been in the new role a minimum of 6 months. Self-employed Canadians will need to show their bank statements for the last 12 months to get the maximum loan possible.

Accessing a Great Cambridge Car Loan with bad Credit

We promised earlier that we would show you how to get a Great Cambridge car loan with bad credit. You will need to go through a local car dealership, this is the only way you can access these bad credit car loan providers.

The dealership can help you get access to these loans and they can also help you fix your credit, so in the future you never have to worry about paying more interest than necessary.

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