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Car Loans with Bad Credit in Brantford: 3 Helpful Steps for Sucess

Car Loans with Bad Credit in Brantford: 3 Helpful Steps for Sucess

The car-buying market in Canada could be described in two words “on fire.” During the Covid-19 pandemic, the majority of Canadians postponed buying a car or making any other major financial decisions until they could see the proverbial light at the end of the tunnel.


With restrictions being lifted and everyone learning to live with Covid, it seems everyone is trying to make up for lost time.


If you have bad credit and need to buy a car, you can still get a new vehicle, but you should follow the tips our Brantford auto loans team provide if you want to come out ahead.


The credit market is tightening up


Now that people are going back into the office, at least on a part-time basis, the Bank of Canada is raising interest rates to try and slow the runaway inflation that is hitting everyone hard.


When interest rates go up, lenders have to match those increases, and that makes it more difficult to underwrite new loans.


These lenders need to issue no loans to stay in business, but they are also under pressure to avoid taking on bad debts. The credit scores needed to secure a loan have been increased to reduce those risks.


You need to check your credit score right now and see where you stand. A credit score below 600 is considered subprime, and you are going to pay a high-interest rate if anyone is willing to give you credit at all.


We will show you where to get approved for a bad credit car loan in Brantford in a bit; however, you should look at your credit report right now and start rebuilding your score.


Potential causes of your low credit score


There are a few likely reasons why your credit score is on the low side; the first is perhaps you do not have a good mix of credit products.


If you only have one credit card and the balance on that card is at 100% utilization, then your credit score will be low. You should try to reduce your credit utilization rate to around 30% if you want to see your credit score increase.


If any accounts are past due, you need to bring those up to date as soon as possible.


Where to get a car loan in Brantford with bad credit


As promised, we are going to show you how to get a car loan with bad credit; you will not be able to find willing lenders online.


The only way you can get a car loan is by working with a local car dealership. The dealership has an extensive network of lenders who cater to bad-credit consumers and will approve your loan.


You should take the opportunity to follow the advice provided by the in-house credit experts at the dealership; they will review your unique situation and draft a detailed plan of attack.


You should contact the dealership as soon as you can; the sooner you reach out to them, the sooner you can get behind the wheel of a new car.


We’d love to help you find car loans in Brantford with bad credit! Simply fill in the form below and we’ll get back to you ASAP! 


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    Categories: Car News