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How Canadians can get a car loan with bad credit

How Canadians can get a car loan with bad credit

We live in a world where we need credit to lead a normal life. If you want to buy a car but have bad credit, there are options available to you that were not available a few years ago.

The first thing that we should talk about is your current credit score and how we can turn things around. So that’s exactly what our Ayr auto loans team is going to do.

What constitutes bad credit in Ayr

Most lenders in Canada consider a credit score under 680 as subprime but that could change depending on the economy. If your credit score falls below 680 then you really should take steps to repair your credit.

Start by listing all of your debts and note whether they are current or if you are delinquent with any of them. If you are not current with your debts, no lender will give you a loan. So, you should focus on paying these debts as soon as possible.

After you have brought your accounts up to date, the next thing you can do is start reducing the total amount of debt you are carrying. Excess debt will limit the maximum amount of money you can borrow for the purchase of a new car.

You should never use credit repair services being sold online. These programs do not work and could hurt your credit score.

This would be a good time to take stock of why your credit score is low. Prospective borrowers will want to know the root cause of the low score, if you lost your job or had some health issues the lender will be more accommodating.

By being straightforward in explaining the causes of your low credit score, prospective lenders will be more willing to approve a loan.

Importance of having a verifiable source of income

While you are working on your credit, you should also prepare documents that will verify your income. Lenders want to know how much income a prospective borrower has when determining whether or not to approve an Ayr car loan.

Since most Canadians are now working more than one job, you will need to bring your bank statements and income tax assessments. Without those documents, the prospective lender will not approve your loan application.

Getting the right professional help

Reach out to your local car dealership for help. The dealership has an extensive network of lenders and will know which of these lenders work with credit-challenged borrowers.

The dealership can discuss your situation with the lender and instead of getting rejected, the lender can approve the loan. This is where the dealership shines, is their ability to get you approved when everyone else has said no.

The dealership has in-house credit experts that can review your profile and let you know how to boost your credit score quickly. This advice can make all the difference so you should take it to heart.

We have covered how you can get a car loan in Ayr with bad credit, now the choice is yours on whether you want to take action. With the shortage of cars available in the market, you should act now.

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

Categories: Car Loan

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