Bad Credit Car Loans in Mississauga: Our 3 Biggest Tips

Bad Credit Car Loans in Mississauga: Our 3 Biggest Tips

Posted on May 26, 2022

Anyone who has bad credit and needs to buy a car should implement these suggestions.

In Canada, you need a car to lead a normal life, especially if you are living in a rural area of the country.

The good news is you can get bad credit car loans in Mississauga, but if you don’t follow the advice of our team, your chances of success will be greatly diminished.

Getting a better understanding of your credit

The first thing you should do is invest some time in understanding the causes of your bad credit.

For example, have you suffered a loss of income due to Covid or a relationship breakdown?

Whatever the cause of your credit challenges, you need to deal with them because they will stay on your credit report for the next seven years.

While reviewing your credit report, do you see any accounts that are past due or currently in collections?

If you have bad credit, there is a good chance that you have one or multiple accounts that are in collections.

This is not something that you can ignore; the longer you leave these accounts in default, the more damage it will do to your credit report.

You must pay these collections off before any lender approves a new car loan, so make it your top priority to pay off the collections as soon as you can.

Cleaning up your finances

You will need to clean up your finances to find additional funds in your budget which can be applied against your outstanding debts.

By paying down your outstanding debts, your credit score is going to start to improve; at first, it may seem like it is a difficult task, but the long-term benefits are worth the initial effort.

If you do not have a budget in place, you should create one; without a budget, you have no way of knowing where your money is going.

When creating your budget, you should also have an emergency fund in place to cover you in case there are unexpected expenses.

A good rule of thumb is 3-6 months of expenses as your emergency fund.

Where to find a lender willing to give you a car loan with bad credit

We did mention there are lenders in Mississauga that will offer you a bad credit car loan, but you will not be able to access them through the internet.

These lenders do not market to the general public. The only way that you can access these lenders is by going through a dealership in your area.

When you go through a local dealership, they don’t treat you like just another application; they take their time getting to know you and understand your unique circumstances.

Once the dealership has a clear picture of your financial situation, they will pick the lender best suited for your situation.

The dealership will also help you select the vehicle best suited for your budget and needs. With bad credit, you will not be able to secure a new car loan, but you will be able to get a loan for a top-notch used car. You really should contact your local dealership today.

We’d love to help you find bad credit car loans in Mississauga. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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