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

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

The availability of bad credit car loans in Simcoe is starting to be reduced. If you have credit challenges and want to buy a car, you will need to move quickly.

Why are Simcoe bad credit car loans hard to find?

There are many variables at play but it comes down to the high prices of new and used cars. Car prices are climbing and with inflation at generational highs, the cost of owning and operating a car has never been more expensive.

As the price of cars climbs higher, it means the total amount of money that needs to be financed for the purchase of the car is also higher.

A higher price is not an obstacle if you can get a Simcoe car loan at 5%, but if a person has bad credit, then their interest rate could be 10% or higher. This could make it impossible for them to qualify for the car loan based on defined debt to income limits.

Steps to take now

The initial step is to figure out why your credit score is low, while you may think you already know the reason, it would be financially prudent to look at your credit report to rule out any potential mistakes.

While looking over the credit report, if any mistakes do come up you can have them corrected by notifying the credit reporting agency.

Even if there are no mistakes, you can start to repair the damage that was already done. You have to start making all of your payments, no matter how small on time.

As you begin making your payments, your credit score will start to increase rapidly, it is not unheard of to see a 20-50 point jump in a single month by simply paying your bills on time.

If you do not have time to wait and with the lack of new and used cars to buy, time is running out then you should explore what auto financing options are currently available.

You will not be able to find a lender that will work with a person who has bad credit directly. The only path forward is to connect with a local dealership that has lenders who specialize in this niche.

You will need to prepare yourself for a high-interest rate, there is no way to avoid it since you have bad credit.  There is a silver lining though, if you take the loan now and heed the advice that is given by the dealership then you will be able to refinance the current high-interest auto loan into something more competitive.

Usually, it takes 12-18 months before your credit score reaches that level but some people do it sooner.

To benefit from this opportunity and get a new car, your next action item is to reach out to a local dealership as soon as you are done reading this and meet with them.  The advice you receive from the dealerships will help you save money and still buy the car you need today.

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

Categories: Auto Loan

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