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Who is Birchwood Credit Solutions?
Birchwood Credit offers Canadian consumers the auto financing they need, regardless of their credit profile. Their mission is to get Canadians into reliable cars with higher approval rates and more affordable interest rates. However, any vehicle financing option can be a large financial responsibility to take on, so it’s best to learn everything you can about your lender prior to applying with them.
Will I Qualify For Vehicle Financing With Birchwood Credit?
Unlike the average credit card, financing a vehicle may involve you borrowing a significant amount of money, so lenders want to know that you’re going to be a responsible client. Not only are they likely to inspect your bank account details and credit report, but there may also be a few extra requirements during the application process.
To qualify with Birchwood Credit, you must also present the following elements:
- Your valid driver’s license
- Proof that you’re a Canadian resident (government ID, etc.)
- Proof that you have a monthly income of at least $1,500 (bank statements, etc.)
Luckily, it’s relatively easy to qualify for a car loan with Birchwood Credit. They even claim that they specialize in drivers who are new to Canada or don’t have solid credit histories. Be careful, because they will check your credit when you apply, which will lead a hard inquiry on your credit report and a slight decrease in your credit score.
Where and How Can I Apply With Birchwood Credit?
Birchwood offers auto loans in Manitoba. They have three dealerships in Winnipeg where you can apply for in-house financing and acquire your vehicle on the spot.
However, if you’re currently located outside of Winnipeg or you’ve decided against in-house financing, you can also fill out an application through their online portal, which should only take a few minutes and doesn’t require any fees or obligations.
Unfortunately, while it may be easier to get approved through one of Birchwood’s in-house loan programs, where lesser financial health is accepted, you might find it harder to qualify for bank financing through their website, as they are partnered with:
- RBC
- Scotia Bank
- TD Bank
- Credit Union
- Cambrian Credit Union
- BMO
- Honda Finance
In this case, clients with better credit and finances will have a greater chance of approval for decent loan conditions and interest rates. That said, in-house financing could be slightly more time consuming and expensive, as you’ll have to apply on-site and may be subject to different loan or service costs than with traditional bank financing.
What Features Does Birchwood Auto Financing Offer?
On their homepage, Birchwood Credit has a calculator that shows you a basic estimate of how much your auto loan would cost overall. There, we can see that they offer:
- Loans of $5,000 – $50,000
- Repayment terms of 1 – 72 months
Although you’ll have to visit one of their dealerships, send them an email, or speak with one of their sales representatives to get full details about their financing options, applying for an auto loan with Birchwood Credit can offer up the following benefits:
- Canadians who have bad credit or have recently been discharged from bankruptcy can qualify (at least for in-house financing).
- They have an instant messaging system available on their website.
- They offer a wide variety of vehicle names, makes, and models.
- You’ll have the option of making a down payment to reduce your vehicle’s repayment term and overall cost.
- You can potentially qualify for more favourable financing conditions if you have healthy finances and a good credit score of 660 – 900.
- If you visit a Birchwood dealership and qualify for in-house financing, you may be able to test-drive and purchase your vehicle within the same day.
- They have a detailed blog where you can find more information about auto financing and other related subjects.
What Could an Auto Loan With Birchwood Credit Cost?
As previously mentioned, Birchwood Credit Solutions offers loans of $5,000 – $50,000, so you can expect to pay at least that much in terms of principal throughout your repayment term. Their website does not contain a significant amount of information concerning their interest rates and other loan-related fees, so you should discuss the issue with them directly before you actually apply.
Here are a few other expenses that may be associated with financing your next vehicle through Birchwood Credit:
- Loan origination and other administrative fees
- Warranty and insurance packages
- Vehicle options and add-ons
- Various taxes (HST, GST, etc.)
- Dealership service fees
- Other vehicle-related fees (licensing, registration, etc.)
- Future maintenance and fuelling costs
Prior to applying for any form of vehicle financing, it’s a smart idea to consult a professional financial advisor and get a full loan quote from your potential lender. After all, you will be paying off your chosen vehicle for years to come and these costs might be unaffordable if you lose your job or experience a financial emergency.
What Questions Should a Canadian Driver Ask Birchwood Credit?
Overall, applying for auto financing through Birchwood Credit isn’t too complicated, particularly online. Nonetheless, it’s important to keep these questions in mind when applying.
What Other Requirements Are There For Bank Financing?
Remember, Birchwood Credit does business with a number of major financial institutions in Canada. The banks or credit unions that they’re partnered with may need to inspect your:
- SIN # (social insurance number)
- Credit report (history, score, etc.)
- Current and recent addresses
- Yearly/monthly income
- Employment record
- Existing debts (household, other credit products, etc.)
- Vehicle’s bill of sale
How Can I Earn the Most Favorable Auto Financing Conditions?
There are many different costs to think about when it comes to vehicle financing, whether it’s done through a bank or a dealership. That said, there are a few things you can do to receive the best approval odds, interest rates, and repayment plans, such as:
- Increase your credit score to the good range (660 – 900)
- Consolidate your unpaid debts
- Maintain a steady job for at least a few months
- Find a strong borrower to cosign your application
- Offer collateral as loan security
- Wait until your finances recover from a consumer proposal or bankruptcy
What Are the Pros and Cons of Applying With Birchwood Credit?
Last but not least, let’s discuss the overall benefits and drawbacks of getting your auto loan through Birchwood Credit Solutions.
Pros
- You can choose from several vehicle financing methods
- Borrowers with lower credit scores (300-600) can still qualify
- Responsible payments should elevate your credit score
- Applying with strong finances and credit can earn you favourable loan conditions
- Enough financing can help you purchase the vehicle you’ve been looking for
Cons
- In-house financing can be very expensive and may only be found in Winnipeg
- Loan fees and interest rates are not displayed within the Birchwood website.
- Bank financing and affordable rates may be harder to acquire if you have unhealthy finances or credit
