Bad Credit Car Loans
The reality of life is that not everyone has good credit, but the fact of the matter is that people with bad credit still need the same fair access to loans as those with good credit. At Loans Canada our number one goal is to provide those with bad credit with the access they want to the car loans they need. Bad credit can make dealing with more traditional lending institutions, like banks, extremely difficult. This is why Loans Canada has worked for year to create a network of car loan providers. We’re able to work together to match all our clients with the best possible lenders for their unique financial needs.
Every year we provide thousands of Canadians just like you, who suffer from bad credit with the car loans they need (more information here). To help you navigate through the car loan application process as smoothly as possible, here are a few things you should know.
Preparation Always Helps
Before you apply for any type of loan, especially when you have bad credit, you should be as prepared as possible. This includes, but is not limited to:
- Organize all necessary documents and papers
- Have an idea what you can afford to pay each month
- Know what type of car will best suit your needs
- Have a good understanding of where you stand financially
Potential lenders like to see that you’re prepared to deal with them; this shows them that you’re interested in the process and that you are willing to work with them to get the car loan you want. Another reason why preparation is so important is that it helps make the process go as smoothly as possible. The more prepared you are the easier it will be for you to communicate with your lender and provide them with all the information they need.
Proper Completion of the Application is Important
Our Loans Canada car loan application can be accessed via our website (check it out here) and has been streamlined so that it’s easy to follow and won’t take hours to complete. The number one thing we can’t stress enough is how important it is to properly fill out the application. The application is where the lender gets all the important information they need about you, your needs and your current and past financial circumstances.
The information you provide during the application process will allow us to analyze the situation and match you with the best lender and rates.
If your credit is less than stellar you should probably expect to pay a slightly above average interest rate. To help defer some of the cost and to make sure you’re prepared to deal with the extra expense of a car payment, you should start to save at least a small amount of money every month leading up to taking out a loan.
Avoid These Traps
Because of your low credit score, a potential dealer or lender may try to take advantage of you. To prevent this from happening, avoid the follow traps:
- Markups: A lender profits from getting their borrowers to take on more expensive loans. Stick to your plan and only accept what you know you can afford.
- “Buy here, pay here”:While not all “buy here, pay here” dealerships are predatory some try to prey upon the desperate in order to get high returns out of their loans. Make sure you research your dealership first.
- Yo-Yo financing: This pertains to dealerships that offer in house financing, like “buy here, pay here” dealerships. They allow you to take your car home before your loan is completely approved and then in a few days say that your loan application has been rejected. Since you already have the car, they trap you into accepting stricter loan terms so that you can get approved.
Get Started Today
Loans Canada believes that all Canadians should be able to get the car loans they need, regardless of their credit histories. We’ll work with you to complete the application process and get you your loan as fast as possible.