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Oakville Car Loans with Bad Credit: 3 Actionable Tips for Success

Oakville Car Loans with Bad Credit: 3 Actionable Tips for Success

Anyone looking for Oakville car loans with bad credit has some significant challenges to overcome. The odds of you being able to secure a car loan on your own with terrible credit are slim to none.

 

Our Oakville auto loans team are going to show you how to get a car loan even though you have credit issues, so be sure to stick around until the end of this conversation.

 

How car loan underwriting works

 

The world of automobile financing may seem complex and mysterious, but it is pretty simple to understand once you take a look behind the curtain.

 

Lenders want to issue loans to borrowers and get paid interest, but these same lenders do not want to approve a loan to someone who will not pay back the loan as agreed.

 

No one is able to predict the future, but past behavior is a good indicator of future activity.

 

All things being equal, if a person has been responsible with their finances in the past, they should continue to do so, barring a major life event like losing their job, health issues, or a relationship breakdown.

 

It is illegal for a lender to make a decision based on someone's appearance, plus it is a bad way to determine whether someone is responsible with their finances.

 

The only way a lender can assess the risk of a borrower defaulting on a loan is by looking at their income and credit score.

 

Each lender sets its risk tolerance based on the credit score and income of the borrower; the greater the risk, the higher the interest rate.

 

There are some lenders who specialize in financing borrowers that have terrible credit, but they do not advertise directly to the general public, so you cannot access them even if you want to.

 

We are going to show you what steps must be taken to access these lenders in a bit.

 

Why do you have terrible credit?

 

You need to sign up for credit reporting services like Koho and find out your credit score.

 

Once you have access to your accounts, take a few moments to identify which accounts are past due or in collections, this is the primary cause of a low credit score.

 

Thankfully, you can turn things around by making it your top priority to bring your accounts up to date. It will take a month or two before your credit score improves, but it will get better.

 

How to get a car loan with terrible credit today

 

While you are working on improving your credit, there are lenders who are willing to give you a loan today.

 

You must go through a local car dealership that services borrowers with credit challenges to access these lenders.

 

Unfortunately, you will not be able to secure a loan for a brand-new car due to the higher interest rate that comes with the loan, but you will be able to get a great quality used car.

 

The best part about getting the car loan today, aside from being able to drive the car, is that by making your car payments on time, your credit score will improve.

 

In a matter of months, you will be able to secure very competitive car loans, but you need to take the first step and contact the dealership.

 

When you're ready to get approved for Oakville car loans with bad credit, 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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