Average reading time: 4 minutes
Do you dream of solo road trips where you can jump into your car and drive anywhere the wind takes you? Or would you love to treat your family to an epic road trip where you can create long-lasting memories?
Maybe you can’t fulfill any of these great dreams because you don’t have a car, or you have a car in a condition you wouldn’t trust to take you anywhere but back and forth to work. And you don’t have any extra money sitting around to buy yourself a car. Plus, you may have a bad credit rating hanging over your head so you know you can’t even get a loan from your bank.
Is there anything you can do to get yourself out of this situation? Are you stumped about how you can get a new car so you can stop dreaming and start traveling?
You Have Two Options
You can keep dreaming, be jealous of all those around you who are able to travel and continue to drive your unreliable car hoping it won’t completely fall apart and cost you more money. Or you can get yourself an auto loan so you can get on the road with a car you trust and take your family on that vacation you’ve all been waiting to take.
But Where Do I Look For A Car Loan, Especially With Bad Credit?
Through Your Bank. When most people think of getting an auto loan, they assume they have to deal with their bank or another big financial institute.
But, perhaps you have spoken with someone at your financial institution and have been turned down for a loan. If you have bad credit, it’s often very hard to get a car loan through a bank. It’s true these traditional financial institutes often only lend to their clients who have good to excellent credit ratings.
Of course, you could take some time to build up your credit score to get a loan through your bank. But, you’re probably looking for a loan you can get now.
Through A Car Dealership. Most large dealerships will offer finance options when you purchase a vehicle through them. However, these offers often rely on having a good credit score.
And, don’t forget, even if you find a place willing to give you a bad credit car loan, you’re limited to buying a vehicle only through their dealership. You won’t get to shop around.
Other Lenders. Your bank is not your only option for getting a car loan. There are plenty of other reputable lenders who will give you an auto loan. And many places will give you options for getting bad credit car loans in Canada.
Bad Lenders. Unfortunately, there are a lot of places out there that will try to take advantage of your situation and scam you. They will offer you a bad credit auto loan, then potentially steal your personal information, and likely never come through with a car loan.
You obviously want to stay far away from these places. Here are some signs that a car loan company isn’t legit:
- They ask you for money upfront.
- They don’t ask for your credit history.
- They don’t ask for your employment history.
It’s also best to do some thorough research on any unfamiliar place that offers you a bad credit car loan. Ask for references in your network for people who have used a certain place successfully. You can also simply check scam sites and the Better Business Bureau in your area.
So, Tell Me More About Getting A Bad Credit Car Loan
There are just a few things you need to think about before you attempt to obtain a bad credit auto loan.
Check Your Credit History
If you don’t know where you stand when it comes to your credit, it’s time to find out what your credit score is. After all, this is what will help or hinder you in obtaining any sort of loan.
Figure Out How Much You Need
You should have at least a ballpark idea of how much of a car loan you will need to purchase your vehicle. You’ll need this information when applying.
Figure Out A Comfortable Monthly Payment
You don’t want to skimp on your other necessary expenses in order to pay for your vehicle. And you certainly don’t want to get into any further debt by starting to put other expenses on your credit card. So, do up a budget to figure out what you can comfortably pay back every month.
A few things to keep in mind when figuring out these numbers is that you will be paying interest on top of what you owe. So, the larger the loan you have, and the longer you take to pay back the loan means the more money you will have to pay in interest.
Figure Out If You Have A Down Payment
If you can get together any amount of money for a down payment that’s going to help you out a lot.
When you apply for a bad credit car loan, you will usually get more options and an even better rate if you have a down payment of almost any size. Any amount you have in savings, or anything you have in collateral, will be taken into consideration.
The best place to go when you are looking for a bad credit car loan in Canada is LendingArch.
When you work with LendingArch, you will receive quotes from auto loan lenders all over Canada. So, you know that you’re getting the best car loan interest rates in Canada. Plus, all the lenders we work with are completely screened, so you don’t have to worry about researching a bunch of different lenders to find the right one.
And don’t worry, getting your quotes through LendingArch takes only a few minutes of your time. So, what are you waiting for?! Apply now!