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The truth about bad credit car loans in Caledonia

The truth about bad credit car loans in Caledonia

The average Canadian household is less than an unexpected $200 emergency away from falling onto hard times.

These precarious financial circumstances have led to an increase in the number of Canadians who have bad credit.

If you have bad credit and need to get a car loan in Ontario, there are some options available, but you will need to do some legwork on your end. Stick with us until the end of this discussion, and you will be in a position of confidence.

Seizing control of your finances

Start by getting a clear understanding of why your credit score is bad. Did you lose your job due to the pandemic and faced income instability?

There needs to be an explanation as to why you fell behind with your obligations.

Prospective lenders would like to hear from you about why your credit score is low, and by having a prepared explanation, it shows you are aware of the issue and taking responsibility for it.

You will need to sign up with Credit Karma to get access to your credit report and score for free when you have access to your account, next look at all of the accounts that are listed.

Is it accurate, or are there accounts you have never seen before?

Identity theft is a real problem in the digital age; if there are accounts that you’ve never signed up for or information in accounts that is inaccurate, you have to contact TransUnion or Equifax and dispute it right away.

These items will negatively impact your credit score and stay there for up to seven years!

How to improve your credit score going forward

The good news is your credit score is not set in stone; by implementing these suggestions, your score will start to improve.

  • Sign up for automatic bill payment, so you always pay at least the minimum amount due by the due date. Missing payments is one of the leading causes of bad credit and can be avoided by ensuring your properly budget for these debts.
  • Reduce the total amount of debt you are carrying. If you are carrying too much debt, it hinders your ability to take on new debt. This also weighs down your credit score which makes it more expensive for you to secure a loan.
  • Build an emergency fund, so you are not reliant on your credit cards whenever an emergency comes up. By having some money tucked away for a rainy day, you will have peace of mind.

Where to find a car loan with bad credit in Ontario

While you are working on improving your credit score, you still need a car to live. There are websites advertising bad credit car loans, but you should steer clear of those sites.

Visit a local OMVIC dealership in your area, one that specializes in helping credit-challenged consumers.

These dealerships have the knowledge necessary to get you approved and driving today.

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

Categories: Car Loan

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