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Buying a car in Brantford when you have crappy credit

Buying a car in Brantford when you have crappy credit

Canadians who have crappy credit and need to buy a car have limited options. Our Brantford auto loans team are going to help you make the most of those options so you can come out ahead.

The first thing you need to get clear, the Internet is great for research, but you are not going to find the financing you need looking online; we are going to show you where you need to look for that in a little while.

Understanding the cause of your crappy credit

Before you can address the problem, you first need to understand what is the root cause of your crappy credit.

The initial step is to sign up for credit monitoring services like Koho and get access to your credit report.

Now that you have direct access to your credit report take a few minutes to review all of the accounts and note whether there are any mistakes inside the report. If there are errors, it will bring down your credit score.

The simplest way to deal with errors inside your credit report is by reaching out to your respective credit reporting agency, whether it is TransUnion or Equifax, and going through their official credit report dispute channel.

It could take up to 30 days from the time to notification is submitted before the errors are removed from your credit report.

Tips on how to increase your credit score

Now that you have dealt with errors that are weighing down your credit score, it is time to pivot on the steps you can take to help raise your credit score.

  • Going forward, always pay your debts on time, even if it puts you under tremendous financial strain. Missing a single payment will weigh down your credit score for months to come, so you must do everything you can to keep your commitments.
  • Lower the total amount of debt you are carrying on your credit cards/lines of credit. If your credit utilization rate exceeds thirty percent, it will have a negative impact on your credit score.

By following these simple suggestions, your credit score will start to increase, but there is still work to do.

Taking a closer look at your income

If your credit is terrible, you can still get a car loan provided you are working on rebuilding your credit and you have a good income.

To demonstrate your income is sufficient, you will need to make sure your income can cover all of your current expenses plus the proposed car loan; the magic number is forty percent of your gross income.

Where to get a car loan when your credit isn’t up to par

The best source of car loans when your credit is not up to par is with the help of a dealership in your area.

These local dealerships have the largest network of lenders throughout Canada and can haggle with the lenders to get you approved, even when other lenders have said “no.”

If you are serious about getting a new car, you need to contact your local dealership today and start the process; it is going to be the best call you have made today.

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

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