Bad Credit Car Loans in OttawaBy Caitlin in Loans
If you have bad credit, then you don’t have too many options for borrowing money. From banks and payday lenders to auto lenders, it’s important to know what your options are. Keep these pros and cons in mind before deciding on a lending option that’s right for you.
Talk to the Banker
When you visit the banker, the first thing you will do is fill out an extensive application. Bureaucratic in nature and extensive, you will probably leave feeling as if you have revealed everything there is to know about yourself. After discussing your income levels for the last several years and reviewing your current debt situation, you can expect to answer a few questions about those negative points on your credit report. Finally, you can expect your efforts to be rewarded with a lovely letter arriving in the mail days later informing you that the loan could not be approved due to your credit challenges. Not only is this a waste of time, but it also drags your credit report down a few more points and leaves you feeling defeated and embarrassed.
Visit the Payday Lender
As long as you have a steady job, then you can qualify for a payday loan. The funds are available fast, and they aren’t concerned about your credit problems. You can practically count on being approved and walking away with the funds you need. However, you will also walk away with a high interest rate and hefty fees. Payday lenders have no collateral to ensure that they will be repaid for the debt, so they charge high fees and interest rates to ensure that they will make a profit in the long term. Another downfall of these bad credit loans is that the funds have to be repaid in a short period of time, so you won’t have long to spread out the payments.
Put Your Car to Good Use
If you own your car or have equity in it, then your best solution is to apply for a bad credit car loan in Ottawa. The car is used as security against the loan, so you can take advantage of lower interest rates and more attractive fees. Even if your credit score is low and you have a bankruptcy or foreclosure, you may still qualify for the money you need. As with payday loans, the approval process is fast, so you won’t have to wait long for the funds. With your car as security, you can spread the payments out over a longer period to make the payment level more attractive. You can also refinance the car completely to either lower your payment or get the cash you need as part of the new loan.
Look for bad credit car loans when you need funds fast and have problems with your credit. The attractive terms allow you to save money over payday loans while still getting fast cash. While the rates are not as attractive as they might be through the bank, you won’t have to feel like you are being judged and found wanting. With bad credit car loans, you can take control of your financial destiny and the money you need without jumping through hoops and facing heavy fees. Even if you have bad credit, these loans can be the best choice if you have any equity in your car.