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What you need to know about bad credit car loans in Caledonia

What you need to know about bad credit car loans in Caledonia

There is a massive amount of misinformation online about car loans and credit. This is not some fake news conspiracy, our Caledonia auto loans team has done their research and come up with some important information that all Canadians need to be aware of when getting a bad credit car loan.

There is no standardized definition of bad credit

Something that we need to nip in the bud right away is the term “bad credit”.

There is no universal definition for it. For some lenders, bad credit is someone who doesn’t have a credit score of 800. While other lenders could have a credit score of 350 and headed for bankruptcy but still not considered bad credit.

If you need a newer car but are scared to apply for a car loan in Caledonia because you have bad credit, there are options available.

When was the last time you checked your credit score?

Some people assume they have bad credit and don’t bother checking their score, even though they can access their credit score online for free with CreditKarma.

If you don’t know what your credit score is, it can be hard to set the right expectation. Generally speaking, 680 or higher is the requirement for the lowest possible interest rates but you could still get a Caledonia car loan.

After you have checked out your credit score, you should look at your budget and see how much cash you have left over after paying all of your obligations.

If you are at or near zero, it is time to start trimming off any non-essential obligations, you may have to give up the $10 lattes you have been indulging far too often.

How to find lenders that provide bad credit car loans

If you have good credit, you would be inundated with loan offers from lenders who want your business. The subprime market does not advertise their Caledonia car loans online because they are competing with big banks that have limitless advertising budgets.

The only way you can access the most competitive bad credit car loans in Caledonia is via a local car dealership. You can’t go to just any dealership, you have to target those that advertise 2nd chance credit.

Putting your best foot forward

If you are feeling shy or anxious about applying for a car loan with bad credit, remember the adage that nothing ventured, nothing gained.

You need a car, the dealership wants to sell you a car and the car loan provider wants a customer. In this scenario, everyone can benefit because they all get something they want.

When you meet up with the dealership, they will treat you professionally and let you know there are ways to rebuild your credit so you can get the most preferential interest rates in the future.

Something that the dealership can do is draft up a plan whereby you take out a car loan now at a high-interest rate but in a year or so, once your credit score improves, you can then refinance the car loan at a lower interest rate or buy a brand new car.

Never let the stigma of “bad credit” prevent you from living the life you deserve, do yourself a favor and go speak with a local car dealership today.

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

Categories: Auto Loan

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