Here’s the Check List YOU Need for Getting a Bad Credit Car Loan in Toronto
You need a loan for a car but your credit history is bad. Don’t despair. There are many ways Torontonians can get that car loan in spite of your previous credit history.
Things look bad. You’ve got bad credit, you need a car, and you think it’s impossible to get one because you won’t likely qualify for a loan. That’s it. It’s all over.
But it’s not.
This situation is far more common for Torontonians than you might think. Many Toronto automotive dealerships and credit agencies have seen this before, with people that have struggled with credit issues in the past. Yet they’ve helped those same folks secure a vehicle loan despite whatever credit history they might have had.
If you’re one of those people in this unfortunate situation, there’s real help. You really can get a loan for a car despite bad credit.
Here’s a checklist of tips to help you acquire that car loan you need in lieu of bad credit:
1. Check Your Real Credit Score
This is done right before you get started. Despite your preconceptions, your credit score might not be as bad as you think or have been led to believe. However, you need to get the real facts. Pulling your credit bureau will show you what your credit score is. You can see firsthand what your real credit score is and what options you have thereafter.
2. Check All the Lenders Out
Obviously, there are a lot of moneylenders out there in the Greater Toronto Area and they are not all the same. With that in mind, you need to check as many out as you can to see what pros and cons each business can offer you. Not only will some of them be more apt to work with you and get approved for an auto loan, they will give you a better interest rate on your loan. If you want to apply to multiple auto loan companies, then it’s always best to do this within a 2 week period so your credit score is not negatively impacted. With that said…
3. Look for Local Resources
You’d be surprised how easy you can get a car loan close to home. In Toronto these days, so many financial institutions are aware of how many people need loans but maybe can’t get them. More loan establishments have opened up and are within your area for consultation. The good thing about Auto Loans Canada is that we service all of Ontario and deliver vehicles to our customers!
4. Try Your Bank?
The first local resource some consider is their own bank. It might sound obvious, but too often Torontonians get an auto loan with their bank but they may not have your best interest when they service you. So it’s always important to consider your options of dealing with your bank or dealing with an auto loan specialist.
5. Try the Credit Union
The title ‘Credit Union’ says it all. These cooperative companies are old pros at the loan acquisition game and can provide you with whatever options exist based on your credit and financial history with some low payback interest to boot.
6. See the Auto Financing Specialists
Along with regular credit unions and the bank, you should also see what auto financing specialists exist in your area. These are agencies that specialize in providing loans to people seeking auto loans and have bad credit. If you do a Google search of ‘car loans’, you’ll likely get quite a few listed in your area – some offer better services and, to be honest, some are more reputable than others.
Once you’ve got an auto loan option in place, here are some added tips to help you more:
- It’s not always necessary but some good advice is to try and save up for a down payment for the car, as you’ll have to pay back the loan eventually anyways and this will help reduce your interest that you pay over time.
- You need some discretion in what you buy. Don’t go looking for that new Chevy double-cab pick-up or Mercedes. If you’ve got a bad credit history, now’s the time to be as realistic as possible and work with an auto loan specialist to get you the best possible deal.
- Bring a loved one or friend to help you. A second set of eyes can help you make the best loan decision out a number of offers.
- Go for the lowest APR term over the shortest payback time. Try not to go for offers of lower monthly payments over long periods of time. It can cost a lot in the long run.
- Don’t go for add-ons, like extended warranties, that will be even costlier for you in the long run.
- Make sure your loan terms are final and not conditional where your rates increase.
As tough as things can get with your credit history and as difficult as your financial situation might be or have been, there’s no real reason why you can’t get that auto loan to make life easier. You just need some patience, do some homework, and work to make the best loan decision for you.
With that said, we wish you the best of luck!