Guide to Bad Credit Auto Loans

Car Credit Kingston – Your Complete Guide to Bad Credit Auto Loans

A reliable car is a necessity rather than a luxury. Sometimes it’s the only way to get to and from work, and a must if you’re driving children to school, play dates and extracurricular activities.

However, if your credit rating leaves a little to be desired, there’s a reasonable chance the traditional finance companies and lending institutions won’t approve your loan. They see you as a high-risk case, no matter how desperately you need your wheels to get around.

In this case, a bad credit auto loan gives you options.

Car Credit Kingston have the skills, the contacts and the expertise to guide you through your bad credit car loan application process. With our simple 7 Step Guide to guaranteed auto loans, we’ll help you rebuild your credit rating to get you back on the road with an affordable loan and a new vehicle.

STEP 1. How to get your hands on your credit report

The best way to start is to gain a full understanding of your bad credit situation by requesting a copy of your official credit report.

In Canada, all lending institutions rely on Equifax and TransUnion Canada as the two main credit report bureaus. If you have the time to wait for your credit report to arrive in the mail, you can request it for free. However, if you’d prefer an instant report you can order your credit report online for a fee.

The best alternative is to allow our credit advisers at Car Credit Kingston to contact both agencies for your credit report. We offer this service for free, and it’s instant. Our credit advisers request a copy of your credit report from both reporting bureaus, as information is sometimes conflicting and needs to be rectified.

If you credit score is over 600, you’re on the easy road to getting your car loan approved, so click here for your best option.

However, if your credit score dips below 600, you’ll need to follow the next few steps before picking up the keys to your new set of wheels.

STEP 2. How to manage your current bad credit

Avoiding creditors and collection agencies may seem highly appealing. However if you’re serious about securing a car loan it’s time to deal with your past so you can move towards a better future.

A few key things to consider:

  • Is your credit report accurate? If there are certain issues listed that are incorrect or inconsistent, they can be corrected by making contact with the appropriate credit bureau.
  • An R6 rating on your credit report indicates that you are over 120 days behind on your payment and your file hasn’t been forwarded to Collections to become an R9 rating. By making special arrangements to repay money owed, you can have R6s and R9s changed to R7s. An R7 rating indicates a commitment to repay your debt and will assist you in your next loan application. Don’t avoid your bad credit calls. Arrange a payment plan and you’ll be back on track in no time.
  • Are your bad credit issues small enough to manage on your own or do you need the help of a certified credit counselor? A professional credit counselor or trustee in bankruptcy will deal with these situations on your behalf.  A Google search of ‘Credit Counselor Kingston” or “Kingston Trustee in Bankruptcy” will list many options so make a free appointment and visit someone today.

STEP 3. Find a cosigner or guarantor for your new loan

If you’re finding it difficult to secure a car loan due to bad credit history, find a qualified cosigner willing to help. A friend or relative who is confident to vouch for your loan security and commit to loan repayments if you fall behind will provide our loan advisers at Car Credit Kingston confidence when issuing your car loan. This added security will allow you to secure a loan at a lower interest rate, and the loan will work towards fixing your credit so you won’t require a cosigner for future loan applications

Your cosigner should be over the age of 21, earn over $1800 per month and live in Canada.

At Car Credit Kingston, we understand that not everyone can secure a cosigner, especially when you have a bad credit history. However there are still many options to get you off the beaten track.

STEP 4. Work with a dealership that specializes in bad credit loans

Working through a bad credit loan history can be hard on your pride, so dealing with loan advisers who are sensitive to your situation is important. Make an appointment with a dealership and make sure you feel comfortable with their approach.

Some bad credit situations take longer to rectify than others, and it’s critical that your loan adviser is dedicated to helping you through the process. A bureau will note each time your credit report is requested, which can damage future loan applications. So it’s advisable you follow through with one dealership from the initial application through to the final loan approval.

At Car Credit Kingston, we’re committed to clearing bad credit ratings to get you back on the road. We believe everyone deserves a second chance, and if your history is tarnished it can be difficult to find people who who have faith in your commitment to right your wrongs and move on. You can hold your head high throughout the loan application process, knowing you’re one step closer to your goal.

STEP 5. Work on a payment plan before you choose your car

As a general rule, the process of securing a car loan with bad credit is something you’d prefer to experience only once in your life. That said, choosing a payment plan you can afford is the best way to ensure you meet repayments on time and avoid this path again.

To secure a bad credit car loan, you’ll need to accept a higher interest rate than a traditional car loan. This higher rate will reduce the amount of money you can afford and be able to repay. But if you plan to pay off your loan as quickly as possible, you can amend your bad credit rating and apply for a lower interest rate next time around.

If you budget wisely, you’ll repay your entire loan within five years, you’ll save interest, and you’ll be the proud owner of your car. No more repayments to worry about at all.

When your loan is approved by Car Credit Kingston, you can find a car that is priced to fit your budget, your approved interest rate and your planned repayments. Don’t push your budget – you’ve been down this road before and it didn’t end nicely. Just get behind the wheel of a reliable car that will serve you well for the next few years. Your dream vehicle can be your next purchase.

STEP 6. Keep working on increasing your credit score

So Car Credit Kingston has secured you a loan and you’re driving around in your next vehicle. If you’ve come this far, don’t stop now.

There are still many things you can do to improve your credit situation. In as little as two years you could be driving around in the car of your dreams.

At Car Credit Kingston, we’re committed to guiding our customers through the credit rebuilding process to secure interest rates as low as 0%. Yes, it’s possible! Your Car Credit Kingston loan adviser will provide you with ongoing support and advice to accomplish this mutual goal for years to come.

Now it’s unnecessary to complete a whole credit application online today, the best starting point is to contact one of our qualified credit advisers at Car Credit Kingston. We’ll arrange a time to visit for a confidential conversation about your situation. Our Car Credit Kingston loan advisors will ensure your next loan is approved, and help you purchase a car that not only gets you from A to B, but has you driving the streets with pride.

STEP 7. Book an appointment with someone who can help

If you’ve made it through to Step 7, you’re ready to take advantage of the qualified support and guidance we provide. Book an appointment with a credit adviser at Car Credit Kingston, and we’ll be glad to take some time this week and review your situation. We’ll request your credit reports, talk you through the process and guide your through the necessary steps to loan approval and car ownership.

Everyone deserves a second chance. Book now online and you’ll hear from us promptly. We’re here to help you now and for many years to come.