For several months, you've been keeping an eye on the same car on display at your local car dealership. Yet you're reluctant to apply for a car loan because of your bad credit rating. Keep these tips in mind if you wish to obtain hassle-free Toronto car loans even with bad credit.
Obtain a copy of your credit report.
Request a copy of your credit report from the major credit bureaus namely TransUnion, Experian, and Equifax. Check for any discrepancies on your credit report and make sure the account balances on the report correspond to the ones you have on your personal records. If you find any erroneous items, contact your credit bureau so they can look into the matter immediately.
Once you’ve made sure that the credit report you obtained is accurate, bring it with you when you head out to any car dealership in the Queen City of Ontario. The auto financing department staff will most likely ask you questions on the reasons for the bad credit, so be forthcoming with your answers. Be sure to impress upon them that you're now determined to make wiser financial decisions.
Ensure job stability.
You likely won’t qualify as a good candidate for a car loan if you’ve job-hopped several times in the last two months. Before filling up a car loan application, make sure your current job status is secure and that you have no intention of quitting anytime soon. In effect, you’ll have higher chances of getting approval for a car loan as long as your employment status is stable.
Earmark funds for your down payment.
To get great car loans in Ontario, you’ll need to make a down payment. The ideal amount to save for down payment is 20 percent because cars typically lose 20 percent of their value after the first year. If you pay a lesser amount for the down payment, it means you'll have to pay a higher amount for the loan than the worth of the car itself. But with a higher down payment, you’ll have a correspondingly shorter loan term.
Finally, choose a car dealership with a team of financial experts who can help you out with any car loan concerns. See if they can offer you a variety of loan options that suit your monthly budget. For more information, visit carbuyingtips.com/bad-credit-auto-loans.htm.
Pointers in Applying for Hassle-Free Car Loans in Toronto