Bad Credit Auto Financing

Poor credit is a genuine issue that people in Kitchener-Waterloo cope with. A survey carried out by TransUnion reveals that Canadians average a fair credit score of 650. However, scrutinizing the data shows that the majority of those with a poor credit score of 520 and below are young adults aged 25 below.

Naturally, poor credit is challenging to overcome. Many are still wrapping their head around the responsibilities of adulthood. They’re prone to making dubious financial decisions that impact their credit score. Bad credit makes it tricky, but you need a loan to be able to commute around Ontario. If you’re one of the many Canadians suffering from poor credit, there are still ways you can finance your car.

How Bad Credit Car Loans Work

You should understand why lenders don’t want to loan money to people with poor credit. The credit score is a quick representation of how trustworthy you are with credit. Generally, it’s an effective metric for lenders to make decisions. However, in most cases, it’s overly simplified and doesn’t tell the whole story. It’s much easier to destroy your credit than it is to build one.

Therefore, if you need a car when you have bad credit, be realistic. Lenders are unlikely to approve you for a car loan to a high-end ride. Look at the used cars market, and get one appropriate for your needs. There are plenty of dealerships that specializes in financing folks with bad credit. Often they also welcome first-timers with no credit history at all, we all start somewhere.

First Step: Get approved for a car loan

Step 1 of 3 - Personal Information

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You might probably don’t get a prime rate, but you can rest assure we’ll make everything possible to get you the best rate available. That said, you don’t need to be charged at exorbitant interest with your poor credit as an excuse. Even with poor credit, you can still qualify for zero-down loans, as we work with major banks and have over 20 years of industry experience.

Re-Building Your Credit

If you’re suffering from poor credit, look for a reputable car dealership. The best used car dealerships would work with multiple major banks or credit unions that will re help re-build your credit. They would also emphasize on customer service and should never be pushy on you to close a deal. Take your time and shop around, as long as you have the money you’re a customer to them.

Half of the battle when shopping for a used or new car is to know what to expect. Understand what you’re buying. Take in suggestions from the dealer representative and study it extensively. Most importantly, look up online to gain insight into the ownership experience of that particular vehicle. There will almost always be an owners’ forum for your specific model. It’s easier to make timely payments when your new ride isn’t crippling you with repairs.

Preparing your documents beforehand helps or get pre-approved online. If you have your personal details at hand, dealers know that you’re a serious customer. This includes your employment history, pay slips, residencies and driver’s license. These tell the bigger story of your financial situation. It’s important to note that credit isn’t everything, income is a huge factor for lenders too. Typically, a monthly income of at least $1,800 before taxes and deductions per month should easily qualify you for an auto loan even with poor credit.

Be frank. Tell them everything they need to know. Missed payments, divorces, repossessions, bankruptcies, everything. Dealers are human too, they understand that everyone has their own circumstances. It speaks volume about your accountability if you’re being honest.

We’ve got your back

Sometimes, people have to default on a payment to put food on the table. We understand that, and we reckon that they shouldn’t be penalized so heavily for being in a bad spot. If you have bad credit, get into contact with us at Eagle Auto Mall. We’re certain that we can sort you out with a car you like at the appropriate financing deal.