There is often a common misconception that bad credit or a weak credit means that you cannot have a loan. Some lenders might still be able to offer you bad credit car loans Canada based on different factors. All you need to do is shop around a little to know which dealers will be able to give you a good deal on the auto loan. Here are some steps or tips to help you.
Steps To Get a Car Loan with Bad Credit
- Check and verify if your credit rating is indeed weak. If yes, look at the factors that are affecting the credit rating and see if it can be changed. It is important to know that credit score is not the only thing that decides your qualification for a loan.
- Sometimes having a bad credit score for a home loan does not mean that your credit rating will be bad for your auto loan It will be different as the auto loans are shorter in term and cars are considered easy to repossess than homes.
- Do your research completely and do not let the first lender who offers you a loan take advantage of you. Check out other lenders and there is every chance you might get a better offer elsewhere despite your bad credit.
- It will help to take the loan from somewhere where you have an existing credit history (positive one) like your bank or your insurance company.
- It is better to take the views of your friends and acquaintances when deciding on a car loan. Their suggestions are equally valuable.
- Always remember, lower rate over a longer period is not advantageous. It has to be lower rate over short period which is beneficial to you.
You can easily apply for bad credit car financing loans in Ontario, once you start believing that your credit won’t affect your chances.