How to get a Good Car Loan with Bad Credit in Hannon

How to get a Good Car Loan with Bad Credit in Hannon

Posted on February 2, 2022

Do you have bad credit? Any one of us could have bad credit, all it takes is to miss a few paydays, and your credit score is in free-fall.

Our Hannon car loans team are going to show you how to get a good car loan with bad credit. Don’t worry, we are not going to use gimmicks.

How bad is “bad”?

You may not have bad credit at all, take a look at your credit score and see where you rank compared to other Canadians.

If your credit score is over 620, you have some options available, but you will not get the lowest interest rates—scores under 620 fall into the sub-prime category.

Don’t worry about whether you will be able to find a lender. We will show you how to find a lender in a bit.

What is your budget?

You need to make sure you can afford a new car. Of course, everyone wants to have a nice car, but if you cannot afford it, now is the time and not after you have fallen in love with a car.

If you don’t know how to create a budget, there are resources available. Without a budget, you will never be able to rebuild your credit or know if you can afford a Hannon car loan.

After you have listed all of your obligations and income sources, you should add a line for an emergency fund.

This fund is there to help protect you should any unexpected expenses pop up. A good rule is to have at least three (3) months’ expenses saved up.

Since we are on the subject of budget, do you have any funds you can put towards a down payment? Even a small amount can go a long way when trying to get a bad credit car loan approved.

How to find bad credit car loan providers in Hannon

This is not something you can do on your own, there are lenders that specialize in this type of financing, but you can’t find them online.

We recommend looking for car dealerships in your area that provide second-chance financing. These dealerships can help show you how to rebuild your credit.

Your credit score can improve, but you must follow the advice provided by the dealership.

The dealership will already have working relationships with lenders who specialize in this type of financing. By having a down payment, you show the lender you are serious about keeping your commitment. You need to also provide documents that verify your income.

You will not be able to buy a brand new car with bad credit. However, you will be able to get a good quality used car. Ask the dealership to structure your deal so you can refinance it in a year or two after your credit score has improved.

By having a plan to rebuild your credit, you will be able to buy a new car in as little as twelve (12) months, but you need to contact the used car dealership today.

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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