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How you can benefit from Bad Credit Financing in Hamilton

How you can benefit from Bad Credit Financing in Hamilton

If you’re not familiar with the concept of “bad credit financing” it might seem like it’s not a good thing.  Often when something has the word “bad” right in the name, we assume it’s just that: bad.  Let’s talk about why it doesn’t mean that, and how it can benefit you.

Bad credit can also be referred to as low credit, which means that your credit score falls below a certain level, making it risky for lenders to give you a loan.  In Canada, a score under 680 is below average and one under 600 is poor.

There are a number of reasons why you may have a below average or poor credit score, and it doesn’t mean you have to give up on your goals of getting a vehicle.  What you should do is work on improving your credit score and obtaining a bad credit car loan can help you do just that.

Dealerships that offer low or no credit financing help people with poor credit scores get into the cars they need.  To lessen their risk of lending you the money for your car loan, they’ll charge a slightly higher interest rate on your monthly payments than a traditional lender might.  When you’re in a bad credit situation and you need a vehicle, this is a small price to pay.

How does this type of loan benefit you?  When you make your car payments on time every month, you’re proving that you’re capable of handling your debts and your credit score will start to climb.  Maintaining a long-term loan is important to the credit bureaus that calculate the credit scores of people in Hamilton.

While you’re working away at improving your credit score, you should keep in mind that when it’s time for your next car, you’ll likely be eligible for a lower interest rate on your monthly payments.  Meaning you can either have lower bills every month or you can afford a nicer, newer vehicle.  Who wouldn’t want that?

So, before you dismiss the idea of a car with bad credit financing, think about your situation and how one of these loans could help you.  When you decide it’s time to finance your next car, come see us at Car Nation Canada Direct where we can help you get into the perfect ride.

 

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Categories: Credit Score

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