How to fix your credit so you can get a car loan in Freelton

How to fix your credit so you can get a car loan in Freelton

Posted on August 3, 2022

If you have credit issues and need a car loan, these tips will help you realize your goal of buying a car. Our Freelton auto loans team are here to help.

Establishing a baseline

The first step when trying to rebuild your credit is establishing a baseline. This baseline is your starting point and how you can measure your success going forward.

You should sign up for free credit reports with both Equifax and TransUnion so you have the full picture.

When you have access to your credit reports, note whether there are any mistakes inside the credit report, even something as benign as having the wrong address on your credit report could be a sign of identity theft, so don’t let anything slide.

If you do come across errors, you must notify the credit reporting agency through its official dispute channel.

The law forces these credit reporting agencies to purge the errors from your report once the dispute has been lodged, but the onus is placed on you, the consumer, to get the ball rolling.

Credit rebuilding fundamentals 101

There are no gimmicks when it comes to rebuilding your credit; you may see advertisements online that claim for a nominal sum of money, your credit score will increase dramatically almost overnight.

While this offer may seem too good to turn down, you should steer clear of these modern-day snake oil salespeople.

The only legitimate way to raise your credit score is to follow best practices, namely, paying your debts as agreed without fail.

Make your payments on time and reduce the total amount of debt you are carrying to less than forty percent of your total available credit. Your credit score will improve in no time at all.

Underscoring the importance of having a budget

You should have a budget in place; if you don’t have one already, it is pretty simple to set up and will help you see the big picture when it comes to your household finances.

Most Canadians are just $200 away from financial hardship; that is a very narrow margin of error to live with.

Create a budget where you keep track of every dollar coming in and try to eliminate expenses that are eating away your disposable income.

Items like subscriptions you no longer use are a great way to free up cash in your budget.

Without a budget, you cannot know whether you can afford a new car, so make a budget immediately.

Where to get a car loan when you have bad credit

There are websites that advertise approving any credit profile that is pretty much clickbait with the hopes of getting as many applications as possible.

These websites just take your details and sell them to the highest bidder.

Suppose you have credit challenges and truly want a car. In that case, your best option is to work with a local car dealership, one that has a track record of providing customers with top-notch customer service and support.

These dealerships will do whatever it takes to get you approved for a car loan, but you need to contact them now.

Contact Unique Chrysler for help, advice and competitive Freelton car finance and leasing.

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