Proven strategies to use when buying a car in Stoney Creek with weak credit

Proven strategies to use when buying a car in Stoney Creek with weak credit

Posted on June 14, 2022

If you recently tried to get a car loan from your local bank and were turned down, you would probably feel like there are no alternatives. Even though you were turned down by one lender, that doesn't mean you can't buy a car.

We'll show you how to find other ways to pay for your car, but you have to pay attention to these tips if you want to be successful.

Weak credit car loan credit requirements

Banks have traditionally had some of the strictest rules for giving out credit. If you don't meet their strict requirements for your credit score and proof of income, your application will be automatically turned down.

Since the Canadian financial services sector was opened up there are a lot of different lenders who give loans to people who don't conform to the cookie-cutter model used by the banks.

Credit score fundamentals

TransUnion and Equifax are the only two credit reporting agencies in Canada. The average credit score for a Canadian is around 650+.

Each of these agencies has its own unique way of calculating credit scores, which range from 300 to 800. You can get a free copy of your credit report and score, but you will have to go through an ID verification process.

If your credit score is between 650 and 680, you are neither a prime nor a subprime borrower. Instead, you are in the middle. You can easily raise your credit score by doing a few simple things.

One way to save money and improve your credit score is to pay down any debts you have. Your credit score will go down if you have too much debt, and the extra interest will really cut into your income.

Even though having a good credit score can help you save money on the cost of borrowing, what will make or break a deal is your income.

Lenders want to know if you have a stable enough income to pay for the car loan and your other debts.

Lenders figure out your maximum debt-to-income ratio by multiplying your total monthly income by 35–40%.

This number is your maximum debt-to-income ratio. If this amount plus the loan for your new car is more than this amount, the loan will not be approved.

If you have a big income that can be proven, your chances of getting a car loan will go up by a lot.

Finding the lenders who are willing to give you a fair deal

There are a lot of places in Canada where you can get a car loan, but you want to find one that will take the time to get to know you.

You can't find these lenders online. The only way to find lenders who give people like you a second chance is to go through a local car dealership.

The dealerships already work with all of Canada's lenders, so you won't have any trouble getting a good car loan.

Working with a local car dealership is also a good idea because they can give you expert credit advice. If you follow the advice they give you, your credit score will go up.

Don't feel bad about not getting a loan from the bank. You can still get a new car, but you need to contact a car dealership today.

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

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