How to Find a Car Loan in Guelph with Bad Credit Score
How to Find a Car Loan in Guelph with Bad Credit Score
Posted on January 18, 2022
If you have bad credit, you may feel anxious or embarrassed, but everyone will face credit challenges at some point in their life. You should never feel like having bad credit is a negative reflection on you as a person. So, we want to show you how to find a car loan in Guelph with bad credit score.
The challenge with bad credit is how it impacts your financial health.
Car prices are rising monthly, along with other costs due to inflation. If you need a new car and have bad credit, your options may seem limited, but our Guelph auto loans team are going to show you how to get a car loan.
Understanding your credit score
The majority of us were not taught finance and credit scoring while attending school, so when someone says they have a 650 credit score, you may not know what that means.
Credit scores range from 300-800, 300 is the worse and 800 is a perfect score which most will never get. If your credit score is over 680, then you qualify for prime interest rate car loans in Guelph.
Even if your credit score is in the “bad” range, which is typically 620 or below, all is not lost.
There are a broad range of lenders in Canada, each of these lenders will specialize in a particular niche. Some lenders will focus on borrowers with prime credit, others will give preference to borrowers with bad credit.
You may wonder why lenders would focus on borrowers with bad credit? There is not enough prime business for all of the lenders in Canada, but it goes further than that.
No one wants to have bad credit, sometimes people are victims of circumstance. You could have lost your job due to the pandemic or experienced a relationship breakdown. There are many reasons why a person has bad credit, but it is not because they don’t want to pay their debts.
Lenders that provide bad credit car loans in Guelph are meeting an important need. While these loans are great when you are in a bind, they do come with higher borrowing costs.
These lenders are willing to look past your credit issues but will focus on your income.
Income is key with bad credit loans
The prospective lender must be able to verify your income and it needs to be enough to cover all of your current and future debts. To pass this verification process, you will need to provide your latest pay slips and bank account statements. If the lender can verify your income, you are one step closer to realizing your goal of buying a new car.
How to Find Lenders that a Car Loan in Guelph with Bad Credit Score
The lenders that offer bad credit loans do not advertise online. To access these lenders, you must go through a car dealership. Your local dealership will be able to leverage their extensive network of lenders and find the ones that are willing to give you the best terms.
Armed with that information, you will be able to get a car loan and start rebuilding your credit, reach out to the local car dealership today and explore your options.
Contact Unique Chrysler for help, advice and competitive Guelph car finance and leasing.
For any questions, concerns, or inquiries. Please don’t hesitate to contact us here!
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