Steps you should take when trying to get an electric car loan with bad credit
Steps you should take when trying to get an electric car loan with bad credit
Posted on July 28, 2022
Our Caledonia car loans team has put together the steps you should follow when trying to get an electric car loan with bad credit.
Canadians need a reliable mode of transportation because, frankly speaking, public transit is just not a viable option for most Canadians.
Understanding just how bad your credit is or is not
The first thing you need to look at is your credit to get a sense of just how bad things truly are.
Some people believe they have terrible credit, but it turns out things aren’t as bad as it seems.
You can access your credit report for free; check out TransUnion and Equifax, which are the only two credit reporting agencies in Canada.
Once you have access to your credit report, you will know what your current credit score and the root causes of your low score is.
If your credit score is 620 or lower, you could have accounts that are either past due or in collections. These accounts need to be dealt with immediately before there is any additional damage to your credit score.
While working on repaying these delinquent accounts, you need to stay current with all of your other obligations, this will require some discipline on your end, but it will pay off over the long term.
Working out the kinks in your EV budget
You’ve taken the necessary steps to address the root causes of your poor credit. These fixes will take time before you start to see an improvement in your credit score.
This would be an ideal time to start looking at your budget and find ways to save money.
Every dollar you are able to save in your budget can go towards paying down your current debt or building an emergency fund.
The average Canadian is just $200 away from financial hardship, so having an emergency fund in place will give you peace of mind.
If you have never created a budget before, you don’t need any special software; a simple spreadsheet will suffice.
You just need to account for every dollar that comes in and goes out; only then will you have a clear picture of your finances.
Where to get an electric car loan with bad credit in Caledonia
You cannot secure an electric car loan with bad credit on your own; you need expert help to find lenders that are willing to give you the benefit of the doubt.
To access these lenders, you will need to work with a car dealership in your community.
These dealerships have helped others just like you, so don’t worry about getting approved; so long as you have a stable income that can be verified, the dealership can get you approved.
It would be wise to reach out to the dealership ASAP, though lenders are tightening up their underwriting policies because there is fear a recession is coming, so you need to lock in a great loan now before things get more expensive!
Contact Unique Chrysler for help, advice and competitive Caledonia car finance and leasing.