Damaged credit can make obtaining any kind of financing difficult. And, when you need to buy a vehicle, a low credit score can stand in the way of you getting approved for a car loan.
Getting denied for auto financing is very frustrating when the need for a vehicle is paramount. How can you save time and better your chances for a car loan approval?
Helpful Tips for Car Loan Approval
In addition to having all of your necessary paperwork (driver's license, cheque stubs, etc.) ready, the following things can help you not only get approved, but get it done fast.
- Know your credit score.
It's one thing to have a lender tell you that your credit is damaged, but it's another to know exactly where you stand. Get a copy of your credit reports in order to see what accounts are hurting your credit. You can obtain copies of your credit reports from the two major credit reporting agencies, Experian and TransUnion, free of charge by mail. However, if you want to see your scores or view your reports instantaneously, you may need to pay a fee. Being able to see the exact details can help you resolve an issue, especially if the problem is inaccurate information that you should not be responsible for.
- Get preapproved.
To save time, it is a good idea to get connected with a lender that works with consumers who have issues with their credit before selecting a vehicle. This will allow you to know how much you'll be approved for before spending time taking cars on test drives only to be told that you do not qualify for those vehicles. Canada Auto Loan does just that - we connect you with a dealer who is qualified to help you.
- Know what you can afford per month.
While it is always a good idea to get the best overall deal on a car, truck or SUV, also keep in mind how much your budget can handle. Remember to factor in not just your auto loan payment, but also insurance, maintenance and fuel costs as well in order to avoid buying a car you cannot realistically afford.
- If possible, have a down payment ready.
A down payment is money that you, the buyer, bring to the table when purchasing a vehicle. It shows the lender that you are serious about the purchase, and gives them more assurance that you are committed to repaying the loan. It will also reduce your monthly payments because you are borrowing less money and, depending on the amount, could help you quickly build equity in the car.
Financing Options for You
At Canada Auto Loan, we help you find the car dealer who has the best chance of getting you approved for a car loan regardless of a damaged credit history. After you complete our secure, fast, and obligation-free online application, we will put you in touch with the dealer who can get you back on the road. Don't waste any more time and start today.