Toronto Bad Credit Auto Loan
Lots of people have bad credit. Here are a few things you can do to help yourself when you need to get a loan. You should plan to save some money for a down payment and also check your credit score. The more money you are able to save for the down payment, the better you will be. If this is not possible, try to find a reliable co-signer. Anyone who has bad credit gets more interest on their loan. If time permits, try to increase your credit score before getting a loan.
When you are ready to get a loan, make sure to shop around and look at all your options for lenders and compare their offers. This is also how you should shop for a used car.
Getting a Bad Credit Car Loan
The first thing any lender will look at is your credit score. This is a 3 digit score that it between 300–850. Factors that go into creating this score include any money you have borrowed, your payment history/reliability, and how many times you have ever applied for credit.
Before going out and asking lenders for a loan, take a look at your score so you know exactly where you stand. Some lenders have a minimum score you need to meet in order to be considered. This is why its important to know what your score is. You can check your score for free and without penalties to your score.
Once you see your score, this is how it is ranked:
- Very poor: below 579
- Fair: between 580 and 669
- Good: between 670 and 739
- Very good: between 740 and 799
- Exceptional: above 800
If you have the option to wait on getting a loan it will be in your best interest to try and improve it. You can improve your score by examining it to make sure there aren’t any errors. If you do find any, you need to get them fixed and this should help raise your score. Another thing you can do it pay off some debts from previous loans and credit cards.
Steps to Getting A Used Car Loan
Save For A Large Down Payment
Saving for a down payment is something people with all kinds of credit scored need to do. A down payment help lower the final cost of the vehicle you are buying, which in turn, decreases the amount of monthly payments you need to make. This is called the loan-to-value ratio. Typically, account for a 20% downpayment for any car purchase. Again, if you have bad credit, aim for an even higher down payment. The more you can put down, the better.
This is also going to help you have an easier time getting approved for a car loan.
Learn More: https://www.goodfellowsauto.com/financing/
How We Can Help
Are you looking for a Bad Credit Auto Loan in Toronto? Our dealership offers these and more! Go to our website to check out all our available options. Give us a call to speak to a financing agent today!
