Having bad credit makes things hard. Renting apartments becomes a challenge – and you may face rent spikes. Getting approved for new credit cards is unlikely – especially if you’ve failed to make payments in the past. And even getting an auto loan can be quite difficult.
Even if you manage to find a lender who is willing to make an exception for your bad credit score, you may be slapped with an extremely high APR and unfavorable repayment terms, due to the risk that your loan poses.
But things don’t have to be this way. Anyone with bad credit can find a great deal on a car – and here are a few ways that anyone with bad credit can find a great deal on a car, and secure an auto loan.
Check Your Credit
You probably know that you have bad credit – but maybe you’re not sure just how bad (or how good!) it is. Getting an idea of your true credit score by performing a credit check is the first step toward finding a great deal on a car, and rebuilding your credit.
Picture your debt as a giant forest that surrounds you. You don’t know where you are – so you can’t find a way out. Once you get a credit check performed, you have a map. Even if you’re stuck in the depths of bad credit, you have the knowledge of your whereabouts – and you can start following the paths on the map to get yourself out. The first step is figuring out where you are.
Improve Your Credit
This step is easier said than done, of course, and it’s unlikely to be applicable if you need to get a new car right away. But taking some basic steps to improve your credit score can be extremely helpful when searching for a great deal on a car.
It’s possible that, if you look at your credit report, you will find mistakes that you can dispute – perhaps your credit card account was charged off even though you paid it in full – and by finding mistakes and discrepancies on your credit check, you can improve your score in as little as 30 days.
Paying off debt if possible, disputing mistakes, and taking care of old collections accounts can help you boost your score quickly, and help you negotiate a better deal on a car loan.
Look For A Car – But Don’t Take Just Any Loan
Some car dealerships specialize in taking advantage of people who are in desperate need for a new car, and have bad credit. Financing a loan through one of these dealerships can be dangerous if you don’t know what you’re getting into – they can take the form of predatory “yo-yo” scams.
The dealership will call you and tell you that your terms of financing were not complete, and slap you with an APR that is up to 5 percentage points higher than what you initially agreed upon.
It’s better to avoid financing through dealerships entirely – they always have “skin in the game” so to speak, and they may make you a deal that is worse for you – but fill their own pockets.
Get Pre-Approved By A Legitimate Lending Institution
This can boost your chances of getting a good rate on a car from a dealership. By showing that you’ve been pre-approved for a certain amount by your own lending institution, you can often negotiate a better interest rate from the car dealership’s preferred lenders.
Credit unions and banks can both pre-approve you for an auto loan. If you have bad credit, credit unions are more likely to do so – they are often more understanding of your particular situation, and are willing to hear you out.
You may not get the fantastic rate that you would if you had great credit, but if you are pre-approved, you’ll at least be able to ensure that you’re able to get an auto loan.
Bad Credit? Need A Car? Come To Ride Time Today! Get A Great Rate – Even With Bad Credit
Rebuilding your credit is hard. You may not have the time or ability to follow the above steps. That’s okay – we understand. At Ride Time, we specialize in getting great rates for drivers with bad credit.
We have a unique relationship with over 15 lenders in Canada, and we can 99% of the time, help you get you an auto loan approval on your name if you have:
- A job for more than 3 months
- A valid driver’s license
- $1500/month income before deductions
If you have these three things, it doesn’t matter how bad your credit score is. We can almost guarantee an approval with our unique lenders, and get you into a used car right away.
We don’t prey on people with bad credit – we don’t finance any loans through our dealership directly – so you can be sure that we are doing our absolute best to secure you a great rate.
So visit our website, browse our cars, and find the vehicle that’s best for you. Once you do, come on in to our dealership, and get approved for a reasonable, easily repayable auto loan. No stress, no messing around with pre-approval, credit checks, or other hassles. Just a simple loan, a great car, and another satisfied customer – guaranteed.