Car buying tips for Canadians with a 600 credit score

Posted on June 22, 2022

If you need a new automobile and have a credit score of 600 or less, you have to follow all of the suggestions put forward by our Glen Abbey auto loans team.

The average credit score in Canada is approximately 660, but this does not preclude you from qualifying for a car loan; simply follow our advice to succeed.

Going through your credit report with a fine tooth comb

The initial step is to determine why your credit score is in the 600s. There must be something dragging down your score, but the only way to determine what it is to sign up for free credit monitoring services such as Credit Karma.

After gaining access to the various credit monitoring services, you should first identify which of your accounts are in collections or past due.

If none of your accounts are past due or in collections, you must compare the total amount of debt you carry to the total amount of credit you have available.

This is known as your credit use rate, and if it is excessively high, it will negatively impact your credit score.

Inaccurate information in your credit report is the least likely cause of your poor score; you may have been the victim of identity theft. If there are inaccuracies on your credit report, the credit reporting companies are obligated to remove them.

However, you must first inform the agency through their official dispute method.

Do you have enough money to afford a new auto loan?

After reviewing your credit and identifying the reasons for your low score, the next step is to determine how much you can afford to spend for a new car.

Without a budget, you cannot determine whether you have the funds to pay your present debts and any new responsibilities you incur.

If you are unsure of how much to save, anticipate on paying at least $550 on the car payment alone, plus insurance and other running expenses.

With rising gas prices, you might consider switching to an electric vehicle. The days of inexpensive fuel are over, and the sooner you switch to an electric vehicle, the more money you will save.

Where to obtain a competitive auto loan in Glen Abbey

Numerous websites promote negative credit auto loans; these websites are useful for information, but if you are serious about obtaining a car loan, you must work with a local dealership.

These dealerships will learn about you and your specific circumstances in order to select the best lender for you.

Working with their in-house credit professionals is another advantage of working with a local dealership. These folks will outline the actions necessary to raise your credit score to the 720-plus area.

The dealership already has test-driveable vehicles in stock, so you may visit the showroom immediately and drive away in a brand-new automobile, so why not go over to the local dealership immediately?

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