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How to Find a Bad Credit Car Loan in Hamilton

How to Find a Bad Credit Car Loan in Hamilton

There is no denying that car prices are on the rise. If you need to buy a new car and have bad credit, there is hope but you will need to be very strategic with how you approach this situation. We asked our auto loans team for some top tips for anyone planning to look for a bad credit car loan in Hamilton. This is what they came up with.


How bad is your credit?


You may think you have bad credit but in reality, the score is not that bad. The first step is establishing a baseline so check out apps like Credit Karma and find out your current credit score, there is no cost.


While looking at your credit score, note whether it is over 680 or below that number. Consumers with a credit score over 680 are considered prime and those with scores below that amount are classified as subprime.


If your score is well below 680, you can still get a bad credit car loan in Hamilton so do not despair.


Fixing your credit issues


Now that you know your credit score, you can begin taking proactive steps to correct these issues. Start by noting any mistakes inside your report, mistakes inside credit reports do occur and you can have them corrected but you will need to inform the credit reporting agency through their established dispute process.


Start by making all of your minimum payments on time, and never miss a payment again. Missing a single payment can send a credit score tumbling, so if you are forgetful set a reminder on your calendar to always pay the minimum before the due date.


While paying the minimum is great, you also should come up with a plan to pay down the debt you are carrying. By reducing the total amount of debt you are carrying, your score will go up making it easier for you to borrow money at low-interest rates.


If you are working on repairing your credit but need a new car now, you must seek out local expert help.


Working with a local car dealership


A local dealership provides some very unique services that will make your car buying experience very pleasant. The first is they will already have lenders who will give you a car loan, even if you have bad credit.


These lenders do not advertise to the general public, so you would have no way of knowing they existed if not for the dealership.


The dealership is also able to help explain your circumstances to the lender, perhaps your bad credit is due to a job loss and you are now getting back on a solid financial footing. By working on your behalf, the dealership increases your chances of getting a car loan and buying a great car.


When the dealership has helped you get the car loan approved, they also have a vast inventory of new and previously owned cars that will fall within your budget.


As you can see, there are car buying options available to people who have bad credit but you need to make the first move by reaching out to your local dealership.


If you need help or advice on anything to do with auto loans in Hamilton, contact Car Nation Canada today, we can help!


For any questions or concerns, please don't hesitate to contact us here!


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