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.