Ontario Bad Credit Car Loan Approval
Our quick & easy process will have you on the road in no time.
Apply NowHaving bad credit sucks. You can’t get approved for prime loan rates and are required to take out specialty ‘subprime’ loans that tend to have extra high interest rates. Nevertheless, there are still ways to get an affordable Brantford car loan with bad credit. We’ll show you!
7 Tips for Getting Approved For a Bad Credit Car Loan
Do your homework: Before you talk to anyone about a new car loan, you need to make sure that you know what you’re talking about. This is where you’re going to need to do a little bit of research.
Even though you won’t have access to the best loans in Ontario, you’re still going to have some options and you don’t want to get ripped off. Many lenders specialize in people struggling with poor credit.
Get to know all your options. Compare those options and keep notes of your favorites. Always have a back up in case your top choice doesn’t work out. However, we suggest you not apply for too many loans; whenever you fill in an application, the lender/dealership might perform a hard credit inquiry on you which can damage your credit score.
Get a co-signer: Even though you can still get approved without one, having a co-signer makes life so much easier when you’re trying to finance a bad credit Brantford car loan. A co-signer is someone you trust like a friend or family member who agrees to share responsibility of the loan with you. Basically if you cannot afford to pay the loan, the co-signer will pay.
Lenders love co-signers because it decreases risk and assures the loan will be paid on time.
You can still negotiate: Just because you’re struggling with a bad credit score doesn’t mean you can’t still negotiate! In fact, negotiating is essential in making sure you aren’t being taken advantage of when looking for a bad credit Brantford car loan.
The biggest secret to a successful negotiation is preparation. The more you know about your situation, the more confident you’ll be when speaking with the lender. If you’ve seen competition that’s offering a better deal, show it tot he lender and the might match it or even beat it to secure your business.
If your negotiations run flat, move on. There are many lenders out there looking for your business.
Save for a down payment: Interest rates are so much higher if you have bad credit (see image below). That’s why it’s so important to save as much money as you can towards a down payment on your next car.
The more money you put down on a bad credit car loan in Brantford, the less of a loan you need to pay, therefore the less interest you need to pay.
Consider buying a used vehicle: The used car market is huge in Canada. So if you’re looking to find a bad credit Brantford car loan, you are more likely to find one with a used car.
If you get a used car that’s only a few years old, it’ll have most (if not all) of the features you’d find in a brand new car and it’ll be more affordable! Also, when you buy a used car, you won’t have to worry as much about depreciation which is usually a big concern for people who purchase new.
Get pre-approved (online): Many online retailers and in-person dealerships like us at Click to Drive offer online pre-approval with a simple form. Online pre-approval is great because you get to shop around and explore options without wasting any time.
Get the right help: The only way to get a bad credit Brantford car loan is to work with a local dealership. Dealerships have access to a network of lenders who cater to people struggling with bad credit.
The Option of Building Credit Score
We’ll tell you upfront that the best course of action to take here is to work on rebuilding your credit. However, you might need a car loan right away and improving your credit isn’t really possible in the short term. It’s a slow process that happens over time as you build positive credit history.
That’s why we’re going to cover what you need to do if you need a car loan with bad credit right away.
You’re Ready to Start the Process!
Thanks for reading! We hope you now feel a bit better about your chances of bad credit car loan approval in Ontario. When you’re ready to get started, we’d love to help. We have hundreds of new & used cars to choose from and can get you on the road in no time regardless of your financial situation. Fill in the form below to get pre-approved today.