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How to Get a Car Loan with a 650 Credit Score or Less

How to Get a Car Loan with a 650 Credit Score or Less

It seems the housing and car markets in Canada are on fire. House prices are climbing through the roof (pun intended) and car prices are following suit. Even used car prices are in uncharted territory.

 

If your current vehicle is not meeting your needs or you just want a new car, there has never been a better time. The total number of new cars being produced is not able to keep up with demand, so each day there are fewer cars to choose from.

 

Consumers who can’t or don’t want to wait for new cars are electing to buy used cars but even those are being sold at or over asking price to buyer from Canada and abroad.

 

We're not trying to scare you but you'll want to act quick if you want to get a car loan with a 650 credit score or less as our Halton auto loans team explains below.

 

Making sure your credit score is accurate

 

If you are using a free app like Credit Karma, it will let you know what your TransUnion credit score is, but that score may not be what prospective lenders are looking at.

 

You need to get a free copy of your credit report and score from Equifax, just to make sure that both credit reporting agencies have matching information.

 

If there are any errors in the credit report, the law requires the agencies to correct the mistakes but you need to send a letter informing the agency about those errors.

 

It can take up to 30 days for these mistakes to be addressed, so you should review your credit reports now!

 

Sources of verifiable income

 

Most Canadians have more than one source of income, whatever income you do declare to prospective lenders, you need documents that can prove you are actually receiving those funds.

 

Lenders are being extra careful and will not take any chances, especially when it comes to income verification.

 

These lenders who people who review loan applications and if an underwriter approved a loan without getting the right income verification documents, they could lose their job.

 

The best way to prove your income is with bank statements and your latest income tax assessments.

 

How to access a car loan with a 650 credit score

 

This is where things get interesting, most car buyers presume the best way to find lenders is looking online. You will be shocked to hear, that is not the right approach.

 

The only way you will be able to get a competitive car loan with a 650 credit score is by going through your local car dealership. You will be able to identify the dealership by looking for those that advertise their “second chance financing” or “no credit refused”.

 

You will pay a higher interest rate than what prime borrowers pay, but if you follow the credit rebuilding advice provided by the dealership, you can refinance your Halton car loan in a year and save even more money.

 

The car shortage will last for at least 2 years, so unless your current vehicle is in great shape, you need to head over to your local car dealership and explore your loan options.

 

We will use all our skill and experience to deliver the lowest possible Halton auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

 

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Categories: Auto Loan

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