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3 Tips to Buy a Car with Terrible Credit in 2022

3 Tips to Buy a Car with Terrible Credit in 2022

If you are currently bankrupt or in a consumer proposal, the law does not allow you to take on any new debt, so provided you are not in either of these situations, you will be able to buy a car with terrible credit in 2022.

 

That isn’t the end of the story though, as our Welland car loans team explains.

 

Having realistic expectations

 

A brand new car will easily cost upwards of $50,000, and if you're trying to buy a car with terrible credit in 2022 your best and most realistic option is to aim for a used car.

 

There are some wonderful used cars out there that will meet your needs and work with your budget.

 

Used cars were not very reliable in the past, but that is no longer the case.

 

Getting a grip on your credit

 

Are you keeping track of your credit? We recommend checking your credit every other week, if not weekly.

 

This may seem like overkill, but we rely on our credit score for everything, so we need to be on top of things. There are free apps like Credit Karma that will let you monitor your credit score for free.

 

Why is your credit score low? There are a few common reasons why an individual would have a low credit score.

 

First, your credit report could have errors inside of it; these errors are going to put downward pressure on your score, so you need to go through the proper dispute process to address those errors.

 

Another possible reason why your credit score is low is payments are not being made on time and in full as agreed.

 

You could have a perfectly legitimate reason why your payments are not on time, but the credit scoring model does not look at extenuating circumstances; it just asks whether the payment was made as agreed or not.

 

Fortunately, you can turn things around and improve your credit score.

 

There are people trying to sell credit repair services online, claiming to boost your credit score in a matter of weeks for a nominal payment. These individuals are trying to “game” the system, but it could end up doing more harm than good.

 

The secret to rebuilding credit is simple, start by reducing the total amount of debt you are carrying. Credit utilization plays an influential role in the credit scoring model.

 

While paying down your debts, keep all of your accounts current. This is the best way to raise your credit score and keep it high.

 

What if you need a car right away?

 

While you are working on improving your credit, some lenders will approve you for a new car loan, but they cannot be found on the Internet.

 

Instead, you must go through a local dealership that specializes in securing car loans to borrowers with poor credit. The dealership will be able to get you approved for a car loan quickly and will also take their time showing you how to rebuild your credit, so you never have to get a subprime car loan again.

 

The only thing standing in your way of getting a new car today is you not contacting the dealership now!

 

We’d love to help you buy a car with terrible credit in 2022. Simply fill in the form below and we’ll get back to you ASAP! 

 

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