Bad credit EV loan tips that work anywhere in Canada

Bad credit EV loan tips that work anywhere in Canada

Posted on August 26, 2022

Anyone who needs to buy an EV but has bad credit should follow these tips. To live a normal life in Canada, you need a car, especially if you live in a rural area. You can get a car loan, which is good news, but if you don't follow our advice, your chances of getting one will be very low.

Learning more about your credit score

The first thing you should do is take some time to figure out why your credit is bad. For example, have you lost money because of Covid or because of the end of a relationship?

No matter what caused your credit problems, you need to fix them because they will stay on your credit report for the next seven years.

Do you see any accounts that are past due or in collections when you look at your credit report?

If you have bad credit, it's likely that you have one or more accounts that are being taken care of by a collection agency. You can't just ignore this; the longer these accounts are in default, the worse it will be for your credit report.

Before a lender gives you a new car loan, you must pay off these collections. Make it your top priority to pay off these collections as soon as you can.

Get your finances in order

You will need to straighten out your finances to find more money in your budget that you can use to pay off your debts. By paying down your debts, your credit score will start to improve.

At first, it may seem like a hard task, but the long-term benefits are worth the initial work.

If you don't already have a budget, you should make one. If you don't have a budget, you won't know where your money is going.

When making your budget, you should also set up an emergency fund to cover any costs that come up out of the blue. As a rule of thumb, your emergency fund should cover 3 to 6 months of expenses.

How to find a bank that will give you an EV car loan even if you have bad credit

We did say that there are lenders who will give you an EV car loan even if you have bad credit. However, you won't be able to find them on the Internet because they don't market to the general public.

You can only get in touch with these lenders through a dealership near you. When you go to a local dealership, they don't just treat you like another application.

Instead, they take the time to get to know you and learn about your unique situation.

Once the dealership knows what your financial situation is like, they will choose the best lender for you.

The dealership will also help you choose the car that fits your needs and budget the best.

You won't be able to get a loan for a new car if you have bad credit, but you will be able to get one for a great used car. So you should really call your local dealership right now.

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