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How to Rebuild Credit Score and Buy a New Car [2022]

How to Rebuild Credit Score and Buy a New Car [2022]

Canadians who want to rebuild their credit score and buy a new car in 2022 have some unique challenges they must overcome. We are going to show you what steps you must take in order to get a decent car loan in Mount Hope while working on your credit issues.

 

We all rely on credit in Canada

 

The average Canadian relies on credit to meet their basic needs, whether it is buying groceries or renting an apartment; without good credit, everything becomes more expensive.

 

As a result, household debt in Canada has never been higher, and that is even when you remove mortgages from the equation.

 

Taking a closer look at your credit

 

Most Canadians were not taught finance in school and no next to nothing when it comes to credit scoring and credit reporting.

 

There are two credit reporting agencies in Canada, TransUnion and Equifax; you should sign up for their free credit reporting services and review both your score and reports.

 

The median credit score throughout Canada, all things being equal, is around 660; if your score is over that, then you are in good shape.

 

To access the most preferred car loan interest rates, you would need a credit score over 720, but even borrowers with a 600-credit score can get approved for a loan.

 

While looking over your credit report, you should look for any accounts that are either past due or in collections.

 

Past due accounts negatively impact your credit score and will remain on your report for up to seven years, so do everything within your power to bring those accounts up to date.

 

When all of your accounts are up to date, you should look at the total amount of debt you are carrying in relation to the amount of credit you have available.

 

If your credit utilization rate is high, it will bring down your credit score.

 

Therefore, you should aim to keep your utilization rate below 30% to be in good shape.

 

If you have covered all of these basics and your score is still low, you might consider signing up for additional credit cards.

By having more accounts and access to credit, your credit score may drop slightly when you apply for new credit. Still, the score will bounce back once you start using the new facility.

 

How to buy a car when you are facing credit challenges

 

While you are working on your credit, you can still buy a new car, but you will not be able to do it without some expert help.

 

Contact a local car dealership and enlist their help; the dealership will have access to lenders you cannot find online; these lenders specialize in giving loans to credit-challenged borrowers.

 

In addition, the dealership can help show you how to improve your credit, so you will have access to the best deals in the future. If you are serious about fixing your credit and need a new car, then contact the dealership today; it will be the best decision you made all month.

 

We’d love to help you find rebuild credit score and buy a new car. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Brantford dealership. 

 

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    Categories: Car Loan

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