How to Qualify for Car Financing with Bad Credit in Canada
It is common that people with low or bad credit in Canada can find it challenging to get a car loan. Most lenders prefer to work with people who have a standard credit score of 650 and above.
The good news is that there are lenders who specialize in helping those with bad credit to get the loan they need.
However, to qualify for a loan with a low or bad credit score – there are specific requirements you must meet.
One important requirement is your salary. A Canadian with low credit who wants to apply for car financing must earn at least $10.50 an hour which boils down to $1800 per month – to be given a loan. Meeting this requirement is the only way you would be considered for car financing by lenders.
Here are a few important things that can also help you in securing a car loan;
Start saving for a down payment
Down payments can help you secure a more affordable loan and will convince lenders that you can pay off the loan. Before you start thinking of taking an auto loan, start saving towards making a reasonable down payment. This will save you money, lower your interest rate and shorten the loan term. Saving up for a down payment is probably the best way to get a loan with bad credit.
Know where you stand financially
Knowing your financial capability is important before looking to get a loan. Do a review of the financial records – calculate how much you owe, check your savings account and take a look at your earnings.
This will help you determine how much loan you can afford. It will also help you manage existing debts and save money. Everything will be a lot easier when you know how much you can afford beforehand.
Research lenders and loan providers
Do extensive research to see which lender or loan provider is more favorable to bad credit borrowers. By doing this, you’ll be able to find the perfect lender with terms that are manageable for you.
Each lender or loan provider has different plans, while some have higher interest rates – others could be able to provide you with the most affordable plan.
It’s your duty to find out which one works best for you. After your research, you will have a list of lenders and loan providers that suit your financial situation. Compare them to see the best option you have and go for it.
Hayden auto agency works with hundreds of Canadians every day, ensuring that they get good quality vehicles with ease and simplicity, regardless of their credit score. Getting approved for auto financing with bad credit can take several days, and even weeks, but Hayden auto agency work hard to get applicants the best vehicle and financing options fast. If you need an affordable vehicle and want to rebuild your credit, fill the form below to apply with us for free today and learn more!
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