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How to get a Car Loan in Lincoln Ontario with Low Credit

How to get a Car Loan in Lincoln Ontario with Low Credit

The vast majority of Canadians need a car to commute to work and school and run errands like buying groceries. However, if you have a 500 credit score, being able to access a Lincoln car loan may seem impossible, especially with lenders raising the minimum credit score required.


The average credit score in Canada is 660, but you would need a 720 score or higher to access the best terms.


There are other variables that go into underwriting a car loan, but if your credit score does not meet the minimum requirement, then you will not make it to the next step in the underwriting process.


Identifying the cause of your 500 credit score


We need to understand why your credit score is low. The only effective way of doing that is by accessing your credit score with Equifax and TransUnion's free services.


Once you have signed up for the free services, you can take a closer look at your credit report.


While reviewing the credit reports, look for any negative remarks; with a 500 credit score, you may have accounts that have either gone to collections or will be in collections very soon.


The biggest single variable that goes into calculating your credit score is repayment history.


If you have not been making your payments on time, regardless of the legitimate reasons, your credit score is going to drop.


Credit scores do not take into account hardships you may be experiencing, it only notes whether you are paying your bills on time.


If you miss even one single payment, it will cause your credit score to drop, so this is something that should take your full attention.


Developing a debt repayment game plan


After you have identified which accounts are causing your credit score to drop, you can come up with a budget and game plan to repay those debts.


Unfortunately, these negative items are not going to disappear on their own; in fact, they will stay on your credit report for up to seven years.


With each passing day, your credit score is going to drop even lower, so you must start bringing these accounts up to date ASAP.


Where to get a 500 credit score car loan in Lincoln Ontario


It will take some time before your credit score improves, but you need to get a car loan quickly.


What you should do in this situation is reach out to car dealerships in your area that offer bad credit car loans.


The dealership will spend time understanding your unique financial situation and identifying the lenders in their vast network that will give you a car loan.


You will need to pay higher interest rates because of your low credit score, but you will get a newer car to drive.


If you follow the advice given by the car dealership credit experts, you will be able to refinance the car loan in 12-18 months and save money by taking advantage of your higher credit score. You should contact the dealerships today now that you know how to get a car loan with a 500-credit score.


We’d love to help you find a car loan in Lincoln Ontario with bad credit score. 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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