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How to get bad credit car loans in Vineland

How to get bad credit car loans in Vineland

Having bad credit can have a dramatic impact on the quality of your life, both personally and financially. Owning a car is not a luxury but a necessity for most Canadians. We live in such a large country that you need a car to lead a normal life.

If you have bad credit, you can still buy a car but the process will take some work on your end, as our Vineland auto loans team explains.

Assessing your credit

When we say “bad” it is ambiguous and we need to better understand your situation. You should start by getting a copy of your free credit report and score from both TransUnion and Equifax.

Each credit reporting agency will use its own scoring system so you could have a 650 with TransUnion and a 600 with Equifax.

The difference could make or break your dream of buying a car. There are laws on the books that require the agencies to correct any errors but you will need to notify the agency via their dispute process.

Turning your credit score around for the better

No matter how bad your credit score is, you can turn things around for the better. Are you able to pay all of your debts on time? If not, you should contact them to try and work out a payment plan.

This is not a consumer proposal but if you were impacted by the pandemic or some extenuating circumstance, the creditor may be willing to work with you.

You should treat this as a financial wake-up call and make it a priority to always pay your debts on time going forward.

Anyone can miss a payment because they are busy and forget so it would be smart to sign up for pre-authorized payments so you never have to worry about missing another payment.

Using your income as leverage

Car loan providers in Vineland want to be repaid as agreed. They have collateral in the form of the car but the process of repossessing the vehicle and selling it at auction to recoup the loan is labor and capital intensive.

If you have bad credit but substantial income that can be verified, there are lenders that will be willing to work with you. These lenders are not accessible through online or conventional channels, the only way you will be able to work with these lenders is by going through a local car dealership.

The car dealerships already have relationships in place with all of the major and minor lenders throughout Canada.

When the dealership takes your application to the lender, they can explain your circumstances and why your credit score is bad. If you have a good income, the dealership may be able to get a car loan approved.

The good news is you will be able to buy a car but the window of opportunity is closing rapidly. The number of new and used cars available in Canada is dropping every day. If you continue to wait, there may not be any cars available so you need to contact your local dealership today.

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

Categories: Car Loan

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