How to get a car loan with bad credit

November 14, 2019

How to get a car loan with bad credit

How To Get A Car Loan With Bad Credit

Everyone knows that in today’s world, getting a car is a necessity, not a luxury, however, knowing how to get a car loan with bad credit has become such a tiresome and burdensome process especially, if your credit score is not as solid as it should be.

No one prays to have a terrible credit score, but we all always end up having issues with our credit score due to several reasons, ranging from loss of jobs, failure to pay back loans on time and dishonesty in some cases.

If your credit is bad, the possibility of getting a loan is slim, however, there is light at the end of the tunnel, there are several ways to get a car loan even with your credit score in the “red”. We have highlighted several ways below; these tested and trusted steps such as looking out for non- profit agencies, making down payments, and having a friend co- sign on your behalf, are the steps that you can take to get a car loan even with a bad credit. Check them out.

Ascertain your credit state

Knowing your credit score or the state of your credit is perhaps the first and the best step to take before any other step. It is important because it helps the individual determine how “bad” or how “good” their credit situation is. A credit check can reveal several things, such as accounts that are listed as delinquents. Checking these beforehand will give you the advantage to know what your lender doesn’t know or what you should know before you meet your lender. At Yourcarloan.ca, you can run checks on your credit to know your state before you apply for a car loan.

Get all the right information

Loans are easy to get, but what is easy becomes hard if you have bad credit. Bad credit sets you at a disadvantage making it difficult for you to get the best of loan deals, so what do you do in this case? The solution is to get all the information that you need so that your negotiation will be stress less and seamless. Get information about the percentage rate, interests, and time for repayment. At Yourcarloan.ca, we work with dozens of lenders to provide the lowest rates regardless of credit, which means you can and you should get all the information that you need from us.

Compare options

Looking for a suitable car loan is almost the same as shopping for the best deal on a product, or looking for a house within your budget. Except you are fortunate, you will have to look more than once and compare options severally until you narrow down on the best choice. Most people make the mistake of limiting themselves to one lender, and that in itself is very limiting as you have no idea if others have better deals than that single lender. You should visit many lenders as possible within a 7- 14-day window. Guess what, at Yourcarloan.ca, you have access to a pool of lender options to choose from.

Check out non profit agencies

If you had all the money you needed, the chances that you would have started paying back old loans are high, sadly or incidentally, you don’t have as much as you need to offset your debts which is why you need to explore other options such as agencies that offer non- profit loans to customers with the same peculiar challenge that you have. Some of these non- profit agencies provide loans or vehicles to consumers with low income, and if you have any in your vicinity, you should go to them. They are not available everywhere, so you have to find out if they are in your area.

If you can; make down payments

Most lenders will require that you pay down payments before they give you loans or give you the cars you want. if you can afford it, getting a significant down payment is the best option to get a car loan even with your bad credit figures. With a big down payment, you will be able to afford the fees, taxes, and other charges, such as interest that lenders often charge. Not only will this facilitate quick access to the car, but it also widens the option of getting the vehicle of your choice. At Yourcarloan.ca, over 1000 vehicles in stock at all times, your down payment will certainly land you the car of your choice faster.

Cut your coat according to your cloth

This point might sound like a proverb, but it isn’t. It simply means, go for what you can afford. For some folks, getting a car is more of a luxury, which is why they look out for vehicles with features that match the cars of their dreams. Interestingly, cars with features like premium leather seats, digital surround systems, and hi-tech satnav systems and even features like a sunroof often cost more than cars without these features or those with basic features. A bad credit rating is a call to be more prudent and less outlandish in your desires. You can get a car loan, if you learn to cut your coat according to your cloth.

Explore co-signing with a friend

What are friends for, if not for times like this. Your credit score might be too low to get you your car; however, there is an option open to you, if you have a friend or family, provided the friend has a better credit history, you can have them co-sign for you. This is only applicable if the option of co-signing is open for consideration at your lenders

Conclusion

Your credit history might be bad, but that doesn’t mean the end of the world has come for you. You can still get car loans if you follow the rules listed above, provided you have a stable source of income. At Yourcarloan.ca, we can get people into vehicles as early as 24 hours after they apply- unbelievable but true.

Leave a Reply

Your email address will not be published. Required fields are marked *

Ready to Get Driving Today

APPLY NOW

Fast, Easy & Secure

Not Sure if You Qualify?

Find Out Instantly
Still Have Some Questions?

call us at 1 877 211 6894

or visit our contact page to send us a message