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How to get a car loan even if you have bad credit

How to get a car loan even if you have bad credit

If you have bad credit, there is nothing to be ashamed of. You would be surprised by the sheer number of Canadians that are having challenges with their credit.

Our Ancaster auto loans team are going to show you the steps that you need to take if you want to get a car loan with bad credit. Don’t worry the process is not overly complex!

Understanding how Ancaster auto loans are underwritten

To better understand the importance of your credit score, you first need to familiarize yourself with how auto loans are originated.

When you fill out an application for a car loan in Ancaster, the first thing the lender will look at is your credit score. If it does not meet a predetermined threshold, it will auto reject.

These applications never stand a chance and most lenders require a credit score of 680 to get by the auto-approval process.

You will need to check your credit score right now to see whether you are at the 680 mark. Apps like Credit Karma will let you access your credit score for free.

Even if your credit score is over 680. The prospective lenders will need to review your income to determine whether you can afford the car loan.

How to get a car loan with bad credit in Ancaster

To avoid the auto rejection due to bad credit, you will need to get professional help. You will not be able to find lenders online who offer subprime car loans, the only legitimate way to access these lenders is by working with your local car dealership.

Not every dealership has the ability to get a bad credit car loan so you need to look for dealerships that advertise “no credit application refused” or something to that effect.

When you meet up with the dealership, they will review your credit report and let you know what steps you should take to boost your score. The advice that is given by these experts will take a little time to produce results but you can still get a newer car right away.

What the dealership will do after reviewing your unique circumstances is reach out to their network of lenders to find out who will give you a car loan.

The dealership has a long term working relationship with these lenders so they can negotiate on your behalf. Without the help of the dealership your auto loan application would be automatically rejected which is something you do not want to experience.

The loan that you are approved for will charge a higher interest rate than what a prime borrower would pay. If you follow the suggestions that were provided by the dealership then your credit score will rise and you can refinance the car loan to a much lower rate in 1-2 years.

This is the way to get a bad credit car loan in Ancaster. You should book an appointment with the local dealership as soon as possible, with car prices on the rise you could be priced out of the market before you even go for a test drive.

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

Categories: Car Loan

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