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Top tips for securing a bad credit car loan

Top tips for securing a bad credit car loan

Funding a new car after bankruptcy or with adverse credit
can be a challenge, but it's one that can be overcome. Car Nation Canada works
with many customers with less than perfect credit and the vast majority of them
drive out of here happy with a new car thanks to our competitive bad credit car loans. We could do the same for you.

To maximize your chances of securing a bad credit car loan,
follow these top tips:

Check your credit report

The first step before applying for any kind of credit is to
check your credit report. Look for errors and inaccuracies and address them if
you find them. If there are things on your report that could benefit from a
quick explanation, add a note. You can add notes to give context to a situation
and to explain anything negative.

Streamline your financial life

If you have lots of bank accounts, store cards or credit
cards, start closing them down. Any that have a zero balance close immediately.
Those that need paying off, close once paid. The fewer active accounts you
have, the better it looks to a potential lender. Especially if all balances
have been paid in full before closure.

Check your finances

Perform a detailed check on your finances to assess how much
money you can afford to borrow. Bad credit car loans can only be offered if you
pass an affordability check so you should find out in advance whether you can
afford one or not. Doing this will also provide a realistic figure to borrow,
which then lets you know how much you can afford to spend on your new car.

Set up a payment plan

Before heading to the dealership, write down a payment plan
that shows your income, your outgoings and your projected loan amount each
month. This will show the lender that you're aware of your financial position
and have planned your financial future accordingly. Having this prepared before
you apply for a bad credit car loan not only speeds the application process, it
also strengthens it.

Work with a responsible lender

A bad credit car loan can help rebuild your credit score and
get you a new car. To ensure you get the best rate and the best deal, you need
to work with a responsible lender. Not all lenders are created equal,
especially in subprime auto loans. Work with us at Car Nation Canada for a
great deal on a loan and a new car!

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