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Bad Credit Car Loans in London Ontario: Find an Affordable Loan

Bad Credit Car Loans in London Ontario: Find an Affordable Loan

Anyone looking for bad credit car loans in London Ontario must pay close attention to these tips.

 

Our London car loans team will cover all of the things you need to do if you truly want to get a new car, so stick with us until the end.

 

How bad is your credit?

 

There are some people who think they have bad credit, but in reality, they do not. Just because a lender declined your loan application does not mean you have bad credit.

 

You just did not meet their particular underwriting requirements.

 

However, you need the facts, so sign up with Koho financial credit monitoring service; this gives you free access to your real-time Equifax credit score.

 

If your credit score is in the 600-680 range, it is considered good; anything below 600 is considered subprime, and anything over 680 is classified as prime.

 

There are a few variables that go into calculating your credit score. The first thing that goes into the calculation is the types of credit products you have.

 

There should be a mix of instalment loans; this is like a car loan, furniture loan, or any type of agreement where you make the same payment every month.

 

Having only one type of credit facility or having one that is heavily utilized will bring down your credit score.

 

This is why you should make it a point to have multiple types of credit and use them responsibly. If your accounts are not current or you go over the available balance, your credit score is going to take a hit.

 

Having a reliable income is vital

 

Since you have bad credit, your income is going to play an even more important role when trying to persuade lenders to give you a chance.

 

This is because lenders use a formula called the debt-to-income ratio of forty percent; this means that no more than forty percent of your gross income can go towards servicing your debt, including any new car loans you may take.

 

Where to get a car loan in London when you have bad credit

 

There are websites that claim to specialize in bad credit car loans, but those websites are offering you retail interest rates, and most of them only work with a few lenders.

 

What you need is someone who works with all of the lenders and can access wholesale lending. The place to find this type of financing is with the help of your local car dealership.

 

These dealerships have helped people from all walks of life and can certainly help you.

 

The first thing the dealership will do is take its time to understand you and why you have these credit challenges.

 

Once the dealership has the big picture, they can negotiate the most competitive terms for you and also find a car in their inventory to meet your needs.

 

This type of customer service is what sets dealerships apart from websites that offer car loans; there is no substitute for in-person service, especially when buying something as important as a vehicle.

 

You should head over to your local dealership right now and begin reviewing what loan options are available.

 

We’d love to help you find bad credit car loans in London Ontario. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 

 

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