Finding Bad Credit Car Loans in London Ontario

Finding Bad Credit Car Loans in London Ontario

Posted on March 10, 2022

Are you shopping fairly priced bad credit car loans in London, ON? If you have bad credit, don’t worry. You can still get a loan, but there are a few things you need to keep in mind, as our London auto loans team explains.

Taking stock of your credit

The title said “bad credit,” but that is an ambiguous term since we don’t know what constitutes “bad.”

Check out your credit score by signing up with Equifax and TransUnion to see your credit score in real-time. There is no cost for these services, and at least you know whether you actually have bad credit or just average credit.

Credit scoring ranges

• 300-599 is bad credit, and you will be charged higher interest rates if you are even approved.
• 600-699 is considered ok to good; the closer you are to 700, the better your chances of getting approved for a competitive interest rate car loan.
• 700-800 is a great credit score, and you will have no problems getting approved for a car loan at the most competitive rates.

If your credit score is under 600, you can get a car loan, but you will need to have a strong financial profile.

Prospective lenders are going to overlook your bad credit and give you a chance, but your income needs to be verifiable.

You cannot get a loan approved if you are carrying too much debt.

Lenders are not going to approve a loan with a total debt-to-income ratio exceeding 40%, so you should try to reduce your entire outstanding debts as soon as possible.

Having a budget helps; if you don’t have a budget or don’t know how this link will show you how to create a budget.

How to rebuild your credit fast

To rebuild your credit, there are some things you will need to do right away. First, try to reduce your credit utilization rate to less than 30%.

If your credit cards are almost maxed out, lenders consider it risky and are less likely to approve a loan.

Are you current with your accounts? Nothing hurts your credit score like missed payments, even if the payment is very small. You cannot change the past; however, you can make a commitment never to miss another payment.

Accessing bad credit car loans in London

You are taking proactive measures to improve your credit, this takes time to yield results, but you still need a car today!

There are lenders who will approve a car loan, even if you have bad credit, but you will need someone to broker the introduction and deal.

The only way you can access these lenders is with the help of a local car dealership. These dealerships will have an existing relationship with the lenders and will familiarize themselves with your situation.

Everyone has a unique financial situation, and the dealership is going to go the extra mile to make sure you get approved for your car loan.

As an added benefit, when you work with a local dealership, they can also help you rebuild your credit so you will never deal with another bad credit financial product again.

We’d love to help you find bad credit car loans in London, ON. Simply fill in the form below and we’ll get back to you ASAP! 

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