Where to Find the Best Car Loans in Guelph Ontario

Where to Find the Best Car Loans in Guelph Ontario

Posted on April 4, 2022

There are some mistakes you need to avoid to find the best car loans in Guelph Ontario. These tips from our auto loans team are going to help protect you and hopefully save some money in the process.

Importance of knowing your credit score

One of the most common mistakes that Canadian car buyers make is taking the first offer they get from their local bank.

We have become conditioned to think our bank is going to give us the best deal upfront; the reality is these lenders do not have our best interest at heart (pun intended).

While the bank is convenient, they are in the business of making money by issuing loans, and the lion's share of their income comes from issuing mortgages.

So, you should not rely on your local bank to give you a great car loan.

You need to take a look at your credit score and find out whether you qualify as a prime or subprime borrower.

Prime is considered anything over 680, and subprime is anything below 600; if your score is in the middle of the pack, then the interest rate you pay could be impacted by your income.

How to boost your credit score fast

If your credit score is low and you need to boost it quickly, you should try to pay down the outstanding balances on your credit cards.

Carrying too much debt is the primary reason consumers have low credit scores.

Making the minimum payments on time will maintain your current credit score, but if you want your score to climb, then you must reduce the total amount of debt you are carrying.

Income verification process

After reviewing your credit report, you will need to take a look at your finances. Having a good credit score is important, but your income is what makes or breaks your car loan.

Most lenders use a debt-to-income ratio as a measuring stick and will not issue a loan if your DTI is more than 40%; with that in mind, you should look for ways to increase your income by taking on a side hustle and reducing the total amount of debt you are carrying.

When applying for the car loan in Guelph, lenders are not going to take you at your word when you declare your income.

Part of the loan underwriting process will require you to supply proof of income; this can be as simple as a payslip from your employer or a copy of your income tax statement for self-employed borrowers.

Sources of the best car loans in Guelph

The biggest mistake you could make is relying on your local bank for car loans. If you want the best source of auto loans in Canada, you must go through a local dealership.

The dealership has a network of all the lenders in Canada, so you will be able to find the lender with the best terms based on your financial profile.

These dealerships also have credit experts onsite, so you will be able to boost your credit score regardless of the challenges you face.

We’d love to help you find the best car loans in Guelph Ontario. 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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