How to Qualify for a Car Loan in Waterford

How to Qualify for a Car Loan in Waterford

Posted on October 6, 2021

Are you in the market for a new car? Then you need to have a good credit score and stable income or your chances of being able to qualify for a car loan are more difficult, but still possible!

We are not trying to discourage you but on the contrary, if you stick with these suggestions you will be able to buy a car.

The following suggestions were provided by our resident Waterford auto loans team and offer actionable advice to help qualify for a car loan.

Not all lenders are created equal

If you have applied for a Waterford auto loan or any type of credit in the past, and been declined you know how frustrating that can be. The majority of lenders who provide auto loans each specialize in their unique niche.

The big banks are all vying for customers with near-perfect credit and great income, these lenders charge very low rates to get the business.

While every car dealership can provide loans to customers with perfect credit, they (the dealerships) take great pleasure in being able to help people get a loan when other lenders have said “no”.

A common reason that some people are not able to get auto financing is not that they have bad credit, they have hard to substantiate income.

Take individuals who work in seasonal industries like fishing, for a few months of the year they bring in the lion's share of their income.

You could have an office worker who makes $35,000 per year divided over 12 months and a person who fishes making $70,000 over 3 months but nothing else for the rest of the year.

On paper, the person working in the fishing industry makes more but their income is not predictable so they do not qualify for the best terms because of the way they generate their income.

This is just one example but you can imagine the countless other scenarios that hardworking Canadians find themselves in when trying to secure auto loans with competitive interest rates.

Getting your credit under control

There are apps like Credit Karma and others that provide you with access to your credit score in real-time. This score is an approximation. Each lender and credit reporting company has its unique scoring model but if your score is 680 or above then you have good credit.

If your score is not in the 680 or above range, then you can take action now to repair that damage that was already done. Start by setting up payment reminders, by paying your bills on time your credit score is going to improve in as little as 30 days.

You may come across credit repair companies that offer you an immediate spike in credit score for a small fee. Please exercise caution, while there are legitimate ways to improve a credit score there are some organizations that are making baseless claims.  While it may be tempting to use these shortcuts, you should hold off and do it the right way.

By taking action now and addressing your credit issues, over a few weeks or months, your score will rise and you will be able to qualify for competitive auto loans.

The most important thing to do is take action now. The longer you delay addressing these credit issues, the more time it will take to bounce back and qualify for an auto loan in Waterford.

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

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