How to get a car loan with bad credit in Ontario
How to get a car loan with bad credit in Ontario
Posted on October 11, 2022
Ontarians who are having credit issues and need to buy a car are in the right spot. Our aim is to show you the practical steps that need to be taken in order to secure a competitive car loan in these challenging economic times.
A car is a necessity for most Canadians
Unless you are living in an area of Canada that has adequate public transportation, you need a vehicle to get to work and lead a normal life.
While most of us switched to remote working from home model during the covid-19 pandemic, employers, for the most part, are requiring employees to return to the office at least a few days a week.
Understanding why you have bad credit
You need credit to function in Ontario and the rest of Canada; without credit, your life can become very inconvenient.
It would be prudent on your part to understand why your credit score is low and then take proactive steps to address those issues, so your credit score will rise.
To access your credit report for free, there are services like Koho and Credit Karma, which give your credit score and access to your credit report.
After you have gained access to these reports, look for any accounts that are either in collections or seriously past due.
Past due or delinquent accounts are one of the main reasons a person has bad credit; while you cannot undo the damage from the past overnight, do everything in your power to bring these accounts current (while still making your regular payments on all of your other obligations).
Once these delinquent accounts are brought up to date, your credit score can begin to improve, but you still have some heavy lifting to do.
After you have brought your accounts up to date, you need to reduce the total amount of debt you are carrying.
This excess debt impacts your credit utilization rate, and lenders look at that when issuing new car loans; if you have too much debt, it impacts your ability to get a new car loan, so you need to work on that.
Where to get a car loan today in Ontario when you have bad credit
We’ve touched on the steps you will need to take to improve your credit, but that doesn’t solve your need for a car loan today.
You can still get a bad credit car loan even though the credit market in Canada has been tightening up in the last few months.
The only way you stand a reasonable chance of securing a car loan is by working with a car dealership in your area, a dealership that specializes in helping credit-challenged Ontarians access the car loans they need.
If you follow these tips, then you should be able to secure a bad credit car loan but time is running out, so contact a local dealership today.
The dealership will take its time to better understand why your credit score is low and the circumstances that led up to it. This information is vital so the dealership can discuss your situation with a prospective lender.
Contact Unique Chrysler for help, advice and competitive car finance and leasing.