Bad Credit Car Loans Canada
There are times when one can be in a position of bad credit for many reasons, be it medical, divorce, lack of job or any other reason. In situations like this if a person wishes to get a car loan, he has to face difficult road ahead, but in-fact things are not as bad as may appear to be. These car loans are somewhat easier to get compared to personal loans, for the simple reason that for any reason if a person unable to pay properly, the lender can claim the vehicle back; this is not possible in the case of a personal loan.
In Canada having a car of your choice is now a necessity. When people are rushing with time, everyone is looking to get car loans. With increase in demand for bad credit loans, companies start to take them as potential group of customers, with special schemes and wings to take care of their applications and needs thereof. So wipe out misconceptions about Bad Credit Car Loans, which is totally untrue. All this happened as Canadian companies realized there are scores of bad credit customers waiting in the queue for car loans. All that matters for lenders is profits and as long as they make sure a person can afford to repay loan, there’s no difference whether his credit is bad or good. Only difference is stipulations will be tight and so too repayment options.
In Canada, there are many players in the market who can lend car loans for bad credit customers. These are private leasing agencies VFC, Scotia Dealer Advantage, Rifco and Carfinco. The car loan application form can easily be refused when a person approaches either banks or the car dealers. So for those who are having bad credit history, role of the private lenders comes into play. They can do all the preliminary work for the application, verification of personal details, current financial status, age, employment etc and then they deal with the car dealers to help you get the loan. Their rapport with dealers is of help for a customer. The loan can be for the purchase of either the new or used cars.
There are many factors that can influence the grant of car loan and its structure. They include credit score, duration of current job, salary, bankruptcy etc. To avail a loan, the person should be discharged of bankruptcy, the minimum salary limit usually be $1750.00 per month and the minimum of 6 months with the current job. The exact terms and conditions to grant a loan vary between the lenders. Some of the agencies might place emphasis on the credit history and some play emphasis on the current status etc. So it’s wise to approach as many lenders as possible. People might get refused with one agency still may be successful in getting the loan with another. So never get bogged down or disheartened when your application is turned down. Under certain conditions, even banks may grant the loans.
The information about the lenders can be obtained from Internet, yellow pages, local newspapers etc. Online quotations can be obtained from them and they can be compared with one another. Some of the lenders in Canada are Auto Source Financial and Credit Net Financial. The bad credit history, salary will influence the down payment amount, interest, and the duration and the type of cars etc. The amount of down payment will also depend on the type of car purchased. The more expensive a car, the more down payments will be. Along with that some lenders can limit the choice of cars you can loan but others many not have that restriction. So make a list of favourite cars and also study for which of them lenders are offering loans.
Plan, do vital research to understand bad credit loan market and also about companies in Canada. Realizing where we stand helps a great deal, and then only we can put future targets in accordance to our capabilities. Look out for friends who have taken bad credit loan and take their suggestions. Thereafter get online quotes from several banks, compare, and finally arrive at a decision that suits you. Even though interest rates are on the higher side, hidden advantage with these loans is that timely repayment leads to positive effect on your credit rating, say after a year. One of the most important steps is to calculate repayment keeping in mind interest rate fluctuations which varies from 15% to 18%.Online auto loan calculators help us to know exact repayments at any time of the year. Have a holistic view of scheme of things and then apply for car loan.
Another aspect that’s mooted for securing bad credit car loan is to apply for loan along with your friend who has better or good credit ratings than you .Even if there’s no such option for you still try to repay small debts so that it shows cash flow. For example lenders asking for a running bank account for the last few months. Being open minded with the lender is always good, when you meet them explain how you play to repay debts and this obviously instils a sense of confidence. All this has to be done before applying for car loan.
Before a person decides to take a loan, he should be aware of the terms and conditions thoroughly. This can prevent any future complications with regard to warranty, cancellation or termination of the loan etc. Lastly, there is help available to get car loans even in situations of bad credit history. So, be cool and get an affordable car loan of your choice.