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How to get approved for a car loan when everyone has rejected you

How to get approved for a car loan when everyone has rejected you

If you’ve been rejected for car loans by just about everyone, you may feel like there are no options available to you.

Our goal is to show you that there are options available; you just need to know where to look. Stick around with our Mississauga auto loans team until the end of this conversation, and you will be able to find a car loan and start leading a better-quality life.

Lenders all across Canada are on red alert

Even people with decent credit are getting turned down when they apply for a car loan.

Your situation is not unique; lenders are on red alert because just about every report you see on the news has an expert talking about rising inflation, skyrocketing interest rates, and a recession just around the corner.

You need to understand what lenders are looking for, so you can position yourself for success, but remember you are not alone on this journey.

Start by cleaning up your credit

The first thing you will need to do is clean up your credit. This is a critical step because your credit score will follow you throughout your life, whether you are applying for a high-profile job, renting an apartment, or in this case, buying a car.

Your credit score is the first thing that lenders will look at when they are making a decision on whether they will approve a loan or not.

Sign up for Credit Karma free credit monitoring, so you can establish a baseline.

After you have access to your free credit report, you should look for mistakes; they can happen from time to time.

The next step in the process is to look for accounts that are either past due or in collections.

Your credit score will suffer until these accounts are made current, so now would be a great time to allocate any extra cash you have in your budget to pay down these debts.

Budgeting for the new car payment

Once you have a handle on your credit issues, your budget is the next thing you should work on.

Lenders will only approve a car loan if the debt-to-income ratio is forty percent or lower. If you don’t have room in your budget to service this debt, you will need to either reduce your debts or take on a side hustle to boost your income.

Where to get approved for a car loan in Canada

In this situation, what you should do is head over to your local car dealership and get the ball rolling.

The local dealership has the ability to access lenders that you could never find on your own. In addition, these same dealerships will also explain your situation to prospective lenders so they understand the root cause of your credit challenges.

By going through the local dealership, your chances of getting approved for a competitive car loan will improve dramatically, but you need to reach out to the dealership today.

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

Categories: Auto Loan

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