Let’s face it, even under the best circumstances; buying a car can be a difficult process. Most people do not pay cash for this major purchase, opting to finance their automobile. Many potential borrowers incorrectly assume that past bankruptcies, foreclosures or judgements with the resulting poor credit will immediately disqualify them from obtaining a loan. That’s not necessarily true. It is possible to get a car loan with bad credit.
It is a good idea to save money for a down payment if you want to finance a car with poor credit. The down payment will lower the amount you are financing, keeping the payments lower. It also shows lenders that you have discipline with your money, a quality they look for when evaluating loan candidates.
When you have poor credit, it is usually not the time to shop for the car of your dreams. It is simply a fact that financing is more expensive for those with damaged credit. The interest rate you pay will be higher than someone with excellent credit. This will impact how much car you can afford, since higher interest rates mean higher payments.
This is not the time to financially overextend. Financing a car can help to rebuild your credit. You want to be certain that you can afford to make on time payments for the entire term of the loan. Carefully evaluate your income and expenses before approaching a lender. Know in advance what the maximum payment you can comfortably afford is and do not waver from in during the car shopping experience.
There are ways to show a lender that you are credit worthy, despite your current situation. Be prepared to show proof of income in the form of pay stubs or bank statements. If you have a phone or utilities in your name, have copies of several months statements available showing your history of on time payments.
With a little work and planning, it is possible to get a car loan with bad credit.
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S.A.S.S. Auto Group is located in Guelph, Ontario and also serves Kitchener, Waterloo, Cambridge, Milton, Brantford, Hamilton, Fergus, Elora, Puslinch and surrounding areas.
50 Malcolm Road A, Guelph, Ontario N1K 1A9
Tel. No.: 519.822.2277 519.822.CARS (2277)