Bad Credit Car Loans

You’ve just learned that your request for an auto loan with the Bank has been denied. The loan officer explains that the decision has to do with your credit. Banks lend only to prime borrowers; your credit situation places you squarely in non-prime territory.

Non-Prime. You’re not sure exactly what it means, but it sounds like a condemnation that will forever brand you as being somehow deficient to lenders.

However, being deemed Non-Prime doesn’t necessarily mean that your borrowing days are over. It may still be possible for you to get that sought-after car loan.

But first you need to understand the term that defines you. A Non-Prime borrower is one with No Credit or Bad Credit. Each lender has its own definition of what constitutes a Non-Prime borrower, but typically, a credit score of less than 620 lands you in this less-than-desirable category. For more information on credit scores, and what sort of factors cause them to suffer, please see Getting Credit in Canada .

There are four credit grantors specializing in Non-Prime lending who are eager and willing to loan money to those with bad credit. Naturally, though, there’s a catch. The interest rates for Non-Prime borrowers are frequently quite steep — significantly steeper than those paid by their more credit-worthy?

So, now that you understand what your options are here are a few tips:

• Check your credit report. Make sure that everything on your report is accurate; it could be that information has been entered in error, and that your credit history is a lot less blemished than you’ve been led to believe. If you do find information on your report that is inaccurate, you need to address it right away. Contact the credit bureaus in writing, listing your name and address and clearly detailing the nature of the error.

• Access your credit score. For a long time, credit scores were available only to prospective lenders, who used them to evaluate those seeking loans. That has changed; it’s now possible for consumers to access this all-important number. Your score is available online from the credit bureaus: Equifax. If you’ve got bad credit, it’s helpful to know it beforehand. Knowing your credit score will help give you a sense of exactly where you stand in your search for an auto loan.

• Don’t rely on the Dealers. Dealers take a cut of all car financing deals they land; as a result, any loan that they’re able to get you with a bank or financing company is likely to wind up being more costly to you than if you had contacted the lending institution on your own. Ideally, you’ll want to secure your auto loan before setting foot inside the dealership. Auto Source Financial can get you Pre-Qualified for your Vehicle Loan and help you find the Car you’re looking for at a far cheaper price.

• Shop around. Rates will vary from lender to lender; take the time to look around and see what deals are available. Lenders typically define their business according to credit tiers (A, A- and so on.); speak with loan officers regarding how each tier is linked to credit score and interest rate. Ask for a matrix detailing the tiers and their implications; having something in writing from each lender will make it easier to compare your options effectively. If you have a checking account, make sure to include your bank in your search for a loan. Many banks have entire departments dedicated to providing loans to those with flawed credit, and they tend to look more favourably upon applicants who are current clients. Your credit union is also a good place to turn. For years, credit unions have had a reputation of lending only to members with good credit, but that’s begun to change. Many are now beginning to expand their business to include those with less-than-perfect credit.

• Remember that your credit score is malleable and ever-changing. When it comes to your credit history, the ball is entirely in your court. You can improve your bad credit by paying your bills on time, and not overextending yourself when it comes to loans and credit cards. With proper attention paid to the state of your credit, you could conceivably hoist yourself out of Non-Prime territory in as few as two or three years. Going forward, check your credit score at least once annually. You may have to pay more than you’d like for the auto loan you’re about to receive, but in a couple of years, if your credit score has improved, you’ll probably be able to refinance your loan at a much lower rate.

Guaranteed Car Loans Canada

Get a Guaranteed Car Loan in Canada

Author: Auto Source Financial

If you’re New to Canada or New to Credit getting a car loan can be a very difficult task. Many people who have never had credit in Canada are continually being turned down for financing because they have zero credit.

Many of our past customers have said:

“How am I suppose to get credit if nobody will give it to me”

This is a fair question that needs to be answered!

When you go to a car dealership the Business Manager –Finance Manager takes your credit information such as you name, address, birth date and employment information. Many times Business Managers will not check your standing with Equifax and submit you to ever bank in their portfolio in hopes of a credit approval.

By doing this the Business Manager is actually hurting your Credit! If you have never had credit or applied for credit before it’s very important to limit the number of enquiries on your credit report. The more enquiries you have lessons the chances you have of getting credit.

What happens is one Bank checks your credit and sees another Bank also checked your credit. Then they assume well the first bank turned them down so why should we approve them. Thus another turn down from the Bank and another hit against your credit score.

Auto Source Financial has specially trained credit analysts who understand Canada’s credit reporting system and can work with you to obtain New Credit in Canada even if you had Bad Credit in the Past.

Our Credit Specialists with also help you obtain a Credit Card and tech you how to take your credit score for (N) to 750 within 6 months.

Take the right steps to obtaining credit in Canada the right and easy way go to www.autosourcefinancial.com and apply on line. We finance your future no your past!

About the Author:

Auto Source Financial is a Canadian Financial Firm that assists people with No credit or Bad Credit Obtain Vehicle Financing. We Specialize in New Immigrants and Foreign Student Vehicle Loans.

Article Source: http://www.articlesbase.com/cars-articles/get-a-guaranteed-car-loan-in-canada-759778.html

Getting Credit In Canada

Trying to get a Car Loan in Canada with no credit or bad credit can be a tiresome task. Many people go to car dealerships thinking the finance managers can get them approved for a car loan regardless of their credit history?

The truth is many if not most car dealer finance managers have little to no experience in consumer credit. Many Finance Managers or Business managers are ex car salesman or have taken a Business Managers course for a few weeks and then learn by trial and error.  

Most times they just submit your credit information to all financial institutions and hope for some form of credit approval. Many times they don’t even analyze your credit profile prior to submitting your information to the financial institution.

Then when all the financial institutions have declined your credit application they inform you that they were unable to obtain a car loan for you?

This also applies to many car dealers or so called financial brokers who advertise No Credit, No Problem Car loans. Once again you’re dealing with someone who has limited experience in consumer credit and once again they will submit your information to the credit lenders they think will possibly approve your application and hope for the best!

What they don’t tell you is when they submit your information to all the financial institutions each institution does an individual credit enquiry on your credit bureau! This can create problems for you in the future if you didn’t get approved for a car loan as now you have a list of financial institutions that have checked your credit information and loans.

As you have been turned down by one car dealer or financial Broker you think ok I will just keep trying until I get someone to approve me!

Again every time you apply for credit a financial institution will make an enquiry on your credit file.  Within days you might have 5-10 financial institution enquire on your credit bureau. This now creates a negative for you as when once again apply for credit a financial institution will again check your file and see all these Banks who have checked your file and none of them have approved you for credit?

As a credit lender they will assess that the other Banks wouldn’t give you credit for what ever reason so why should they?

Auto Source Financial approaches your credit from a lenders point of view assessing your credit file prior to allowing any financial lender to check your credit. With 25 years of Consumer lending experience our financial advisors have they knowledge of how to approve for a New Car loan. We will help you understand the credit reporting system in Canada and teach you step by step on how to get or fix your credit in Canada.

Yes Auto Source Financial can get you the credit you’re seeking and get you driving a new car within days of your application. We will assist you on obtaining a credit card with an established bank in Canada and get you on the road to perfect credit. ASF is dedicated to assuring you get credit in Canada.

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