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Electric car buying tips for Canadians with bad credit

Electric car buying tips for Canadians with bad credit

Canada's car-buying market is experiencing massive growth to put it mildly. During the Covid-19 pandemic, most Canadians put off buying a car or making any other big financial decisions like buying a car until they were sure the worst was over.

Everyone seems to be trying to quench their desire to shop now that the rules have been lifted and everyone has learned to live with Covid.

If you have bad credit and need a new electric car, you can still get one, but if you want to come out ahead, you should follow the tips we give.

The Canadian auto loan market is getting stricter

The Bank of Canada is aggressively raising interest rates to try to slow down inflation, which is hurting everyone now that people are going back to work, at least part-time.

When interest rates go up, lenders have to follow suit, which makes it harder to approve new loans.

These lenders can't stay in business if they don't give out any loans, but they are also under pressure to avoid bad debts.

To lower these risks, the credit scores needed to get a loan have gone up.

Right now, you need to monitor your credit score to see where you stand.

If your credit score is below 600, you have "subprime" credit, and if anyone lends you money, they will charge you a high-interest rate. We'll show you soon where you can get a car loan even if you have bad credit.

For now, though, you should look at your credit report and start fixing your score.

Potential reasons why your credit score is low

One is that you might not have a great mix of tradelines; your credit score will be low if you only have one credit card and use all of the available credit on that card.

If you want your credit score to go up, you should try to get your credit utilization rate down to around 40%. If you have any accounts that are overdue, you need to fix them as soon as possible.

Where people with bad credit can get car loans

As promised, we'll show you how to get a car loan even if you have bad credit. You won't be able to find lenders online who will work with you.

You can only get a loan for a car through a local car dealership. The dealer has a large network of lenders who work with people who have bad credit and will approve your loan.

You should listen to what the credit experts at the dealership tell you to do. They will look at your unique situation and come up with a detailed plan of action.

Get in touch with the dealership as soon as you can. The sooner you do, the sooner you can be driving a new car.

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Categories: Electric Vehicles