Many of our customers come to us with bad credit and are trying to get a car loan. Having bad credit does not mean that you can’t get a car loan, like many of our customers initially think when they first contact us. In fact, you can not only get a bad credit car loan that suits you financial needs, but your bad credit car loan can actually improve your financial situation.
Here are a few things that you need to know about how bad credit car loans can improve your credit:
Car loan interest rates are based on credit
It’s important for you to understand how car loans work. More importantly, if you have bad credit, it’s important for you to be aware that your car loan rate will be based on your credit. When you have bad credit, you will be able to get a car loan, but the interest rate that you will be paying on that car loan will be greater than the interest rate that you would be paying if you were to have good credit. This is because lenders base their interest rates on several conditions, including economic conditions, the lender’s lending capability, and a borrower’s credit.
When you have bad credit, it is usually because you have made some bad financial decisions in the past – whether you are responsible for them or not. You may also not have a very long credit history, which could cause you to have bad credit. When you have bad credit, lenders can not have the same confidence in your ability to be financially responsible as they might have with a borrower who has good credit. Therefore, in order to ensure that they will receive a return on the money that they loan to you, the lender may charge a higher interest rate.
Bad credit car loans can improve credit
Bad credit car loans can improve your credit as long as you repay the loans because they will be showing lenders that you have developed a credit history and are capable of being financially responsible by repaying the loan on time and in full. Therefore, taking out a bad credit car loan can help to improve your credit and lower your interest rates in the future.
Contact us today for more information about our loan program or to get started with your bad credit car loan!
As most everyone is all well-aware, a reliable vehicle is an essential part of earning a decent living. Many find that the best jobs simply remain out of reach without dependable transportation, which can be particularly upsetting for those seeking to rebuild a previously shoddy financial history. That’s why it’s so important for consumers suffering from past financial instability to secure an appropriate loan best-suited to their current needs. Fortunately, bad credit car loans can be ideal for those seeking to bounce back from bankruptcy filings that may serve to impede future purchases.
Because obtaining a vehicle loan can be exceedingly difficult under even the best of circumstances, those with poor credit histories must take great care when pursuing a prospective financing. In many cases, bad credit car loans can entail exorbitant interest rates, which may result in even more financial turmoil down to the line for those striving to get their finances in order. You don’t want to end up paying more than your vehicle is actually worth, which is why it’s crucial to be aware of all the available options before making any final decisions related to vehicle funding.
Thorough research is key in this event, especially if you wish to avoid any loans accompanied by high interest rates. When seeking possible loan options, the internet can be a great place to start your search thanks to the abundance of helpful resources. These resources can serve as a guide during the decision-making process, while also allowing you to head off steep interest rates on your new vehicle.
Throughout your search you’ll be privy to the many different types of loan brokers out there, as well as things like term lengths and repayment conditions. Finding a good job is the fastest way to get back on you feet again, and you must have a trustworthy vehicle to get to and from work each day. To this end, obtaining the right car loan can be the first step towards creating a new financial future.
There are benefits to bad credit car loans. For one, you can buy a car when you have low credit. You can also boost your credit score. Once you qualify for a loan, the next step is shopping for a vehicle. It is a major step, and there are some precautions you must take. There are missteps buyers make that cost them money. Below are the most common mistakes – and how you can avoid them.
Signing Documents Without Reading Them
The paperwork for a loan may contain unfamiliar information. Read the document and ask questions. If you sign without reading, you may be agreeing to terms that may cost you extra money or even worsen your credit score.
Taking the First Deal
Generally, bad credit car loans have higher interest rates. Still, it is best that you shop around for the best deal. Check with at least three dealerships and ask them about their interest rates. You can find a dealer with lower rates. This will save you a lot of money.
Adding Extras to Your Car
You can get all kinds of extra features for your car. While it is tempting, it is best to avoid them. These features add hundreds or thousands of dollars to the sales price. Stick with a quality car that is equipped with what you need. This way you can avoid monthly budget-busting car notes.
Making Payments at the Car Lot
There are car dealerships that require that you make payments at the lot. These dealers don’t report to the credit bureaus. Buy your car from a dealer or finance company like ours who reports to credit agencies. When you make payments on time it will increase your credit score.
Bad credit car loans help people buy vehicles. Like any loan, it is always best to do your due diligence. You are getting your finances in order. The last thing you want to do is make a mistake that causes you more stress and financial hardship.
So you finally found your dream car. For most people, just putting down cash is not the best or most sensible option. Even if you have sufficient funds available, emptying your savings account may not be your best option. As such, you will turn to exploring financing options. Before you become mired in the vast array of choices and confusing jargon, consider pursuing your financing with us.
We offer competitive financing rates, with several options available. Our knowledgeable and experienced financing professionals are here to guide you through every step. We are here to answer any questions you may have. With us, you do not need to fear fine print and unrecognizable legalese – our financing experts will outline everything in clear terms
Our streamlined application and approval process ensures that you get your financing quickly and without hassle. Instead of waiting days or even weeks for your loan to be approved and for the paperwork to come through, you could be driving off in your new car that very same day.
Available to you is a range of rates and terms so that you can obtain the financing arrangement that is most suitable to your lifestyle and financial position. Our professionals will listen to you and go the extra mile to ensure that your needs are met. We periodically offer discounts and special programs, so be sure to ask our representative to tell you about those.
Together with our financing program, we offer the inclusion of items such as extended warranties, extra rust protection, alarm systems and insurance options. If you are interested in obtaining any of these, they can be included in your financing. Talk to our professionals to find out which options are best for you.
At Trillium Car Loans, financing is available to you on great terms, with many options to choose from. Our financing experts will be there for you every step of the way and will do everything to make sure you are happy with your contract.
Even if you have very bad credit, you still may be able to get a bad credit car loan. A bad credit car loan is possible for all people, depending on whom they approach and how much money you are looking to borrow. In order to get a bad credit car loan, it is important to first understand exactly what you need to know about bad credit car loans.
What is a Loan
A loan is an amount of money that you will borrow. This amount of money will need to be repaid to the lender in a timely manner that is pre-determined based on the terms of the loan arrangement. The amount of the loan and the loan interest rate will also depend on your credit history.
Why Credit Is Important
Your credit history provides insight into your past financial responsibility and track record. If you can prove that you have been able to pay off your loans in a timely manner and as promised, then chances are greater that you will be able to get a car loan. However, even if you have bad credit, you should still be able to get a car loan.
The interest rate is an amount of money that will be based on the percentage of the entire loan. This interest rate will usually be somewhere between six and 20 percent, depending on your credit history. Interest rates are an additional fee that you will have to repay to the lender in addition to your monthly principal interest payment. The better your credit history, the lower your interest rate.
Think About the Loan Amount
If you have a solid credit history, chances are good that you will have a lower interest rate and a higher loan amount than if you have bad credit. However, just because you have bad credit doesn’t mean that your situation is at all hopeless. Sure, you may have to pay a little higher interest rate and you may not be able to take out a large loan.
But, if you take out a loan and are able to repay it in a timely manner, than you will begin to improve your credit so that down the road, when you want to take out a loan again, you have a better credit history.
Contact us for more information about how you can get a bad credit car loan with us today!
If you’re like many people out there, you probably have less than perfect credit. Having bad credit may seem like a scary situation. However, we’d like to ensure all of our customers that having bad credit is nothing abnormal; in fact, many of our customers have bad credit but are still able to get amazing car loan rates that can help them to afford to buy a safe and reliable car.
The good news is that if you have bad credit, you can always improve that credit by taking time to analyze your financial situation and make some calculated situations that have been proven to improve credit. Here are a few reasons why now might be the right time to buy a car with a car loan in Toronto – even if you have bad credit!
Taking out a bad credit car loan can improve your credit.
Keep in mind that credit is a basic analysis of your past financial decisions. When people have bad credit, sometimes it’s because they have defaulted on a loan or declared bankruptcy. Other times, it’s simply because they haven’t ever taken out a loan or had a financial relationship with a lender for long enough to make a record.
By taking out a car loan that you are then able to repay on time and in full, you are helping to improve your credit. Therefore, taking out a car loan – even with bad credit – can help to turn your bad credit situation around. Here’s why: Lenders want to know that you have a credit history and that you have a history of being financially responsible and capable of repaying a loan. Therefore, if they can look at your credit history and see that you have been able to repay your car loan, they will be much more inclined to look favorably upon your credit application and give you a high loan amount with a smaller interest rate.
You need transportation
If, for no other reason, you take out a bad credit car loan, do it because you know that once you have a safe and reliable car, you’ll be able to get to and from work. We work hard to ensure that all of the new and used cars we sell will be reliable so that you will not have to face any unpredicted expenses on top of your car loan.
Having bad credit is nothing to be ashamed of. We have many customers each day that approach us for car loans, but are embarrassed by their credit situations. They also believe that because they have bad credit, they will not be able to get a good car loan that they can actually afford. We want all of our customers to know, first, that we are here to help them get the best cars and the best car loans for their needs. Therefore, we will not pass judgment on them because they have bad credit. In fact, if our customers have bad credit, they are still able to get great cars at amazing car loan rates.
However, by taking some small steps to repair their credit, our customers will be able to position themselves to get a better car loan rate years down the road. We can recommend some simple changes today that will help each of our customers set themselves up for lower interest rates and higher loan amounts years down the road. Here are a few tips for our customers that can help them repair their credit:
Get that car loan
Go ahead! Even if you have to take out a bad credit car loan, you will not only be able to drive away in a car, but you will actually be rebuilding your credit. Whenever you take out a bad credit car loan, you will be setting yourself up to get a good credit car loan down the road. Why? Because as long as you repay that bad credit car loan, you’ll be showing future lenders that you have a history of being financial stable and of being responsible enough to repay your car loans. Future lenders will like that!
If you have been changing your address or job frequently, we know that this may not be your fault. However, it will still reflect negatively on your credit. Therefore, stay put as much as you can. This means keeping the same mailing address and, if possible, keeping the same job.
It’s important that you keep your debts as streamlined as possible. This means that you minimize the number of debts that you have. Close old credit card accounts that you no longer use. If possible, transfer your credit card balances to one card as well. Lenders want to see that you have as few financial commitments to other lenders as possible so that they will know that your financial commitment to them will take priority.