Having bad credit is not an ideal situation but unfortunately it is a reality for a lot of Canadians. There are many scenarios that can lead up to bad credit, but the good news is, there are also many ways to fix your credit score. It’s often a slow process but patience and discipline will keep you moving in the right direction.
We’ll look at the most common reasons for bad credit, what bad credit means for you in terms of getting a loan, and how you can fix your situation.
You may have seen advertising focused on obtaining approvals for bad credit car loans in your city. The truth is, these are types of loans that often come with a higher interest rate because of the borrower’s past issues with poor credit.
Bad credit loans are available for people who have gone through bankruptcy, consumer proposals, divorces, and other financial hardships.
If you have gone through bankruptcy, you will quickly learn that your options for obtaining a loan will be hindered.
However, loans are still obtainable, but you will slide into the bad credit (or non prime) loan bucket. That being said, even if you have had more than one bankruptcy, it is still possible to get approved.
We have helped thousands of Canadians in situations where it felt like all hope was lost.
This also goes for people who have had a consumer proposal or are in credit counselling. We will approve Canadians in these financial situations so long as they are committed to restoring their credit history.
This is another common scenario for our customers. Sometimes going through a divorce can you leave you crippled financially.
One of the hardest parts of going through a divorce is the financial consequences and reduced income. This is why our customer service team will work with you to ensure your approval and to make sure you’re making affordable payments during this new chapter in your life.
If you are looking to repair your bad credit history, there are a number of things you can do:
- Make your payments on time.
- Slowly reduce your balance over time
- Diversify the types of loans you have on your report (car loans, credit cards, line of credit, mortgages).
- The more credit you have available, the better – be careful not to max out your limit and try to keep a low balance.
- Consolidate your debts into a lower interest loan to reduce your monthly payments.
We have trained professionals working to ensure you get approved for a car loan, even if you have bad credit. We will work to set you up for future success by making sure your payments fit your budget. After successfully making your payments on time, your credit score will visibly improve over time.
No credit car loans are similar to bad credit car loans in the sense that the lenders will look at your history and hesitate to lend you any money due to the lack of a track record of financial transactions.
This can cause a problem when trying to get approved, but there are still lending options available to you.
Some people think that in order to get a low payment on their car loan, they will need to put money down, or trade in their old vehicle. Doing these things will help, but they are not necessarily required for an approval.
There are plenty of options for vehicle financing that do not require a down payment.