So you’re exploring the realm of vehicle ownership, are you? You have a lot to look forward to, like building up your credit into something you can be truly proud of. Getting things on track can be a difficult endeavor, but financing a car is an excellent way to get your credit back on track, and being considered for a loan isn’t as difficult as you might be thinking. Go Auto Outlet is here to help you answer the question of “can I get a car loan with bad or no credit?”
The thing about credit is that it’s what lenders look at first and foremost when considering you for a loan. They want to see if you’re responsible enough to finance a vehicle and able to make your payments on time and in full. When lenders offer you a loan, you’ll likely be looking at a higher interest rate–this number is the lender’s way of mitigating any potential loss in the arrangement. To give these lenders more confidence, there are ways of building up your credit first, but if you’re in need of transportation today, then read on! Go Auto Outlet is happy to sit down with you, regardless.
The Smart Approach to Take…
Walking right in to talk to a lender is one approach, and with Go Auto Outlet, you can be sure our Finance Experts have the expertise you’re expecting from one of the most reputable lenders around. Getting preapproved for credit is a safe way to get in touch with a lender like Go Auto Outlet!
By the way, to check your credit, which is recommended and lenders will always do anyways, get your credit report (and perhaps your credit score too) through a company like TransUnion Canada. This report is an indication as to what your financial situation is and might look like in the future.
You can also start with your personal bank or credit union and request a quote for a loan from them, should you prefer. You can take this quote with you as you shop around for a reasonable financing rate, and a bank or credit union is very likely to help you determine what you can afford and provide additional personal advice.
You certainly can take the deal you get from the bank, but here’s the problem with that: these bank loans are non-negotiable. Loans from your credit union are similar in this regard–but the whole point to seeing these people in the first place is to make a good case for a loan. Once you’ve made the case for yourself, you can come on by Go Auto Outlet and get an even better deal with us!
Actually Getting the Loan
Yes, it’s true that lenders are excellent sources for loans because these loans are indeed negotiable. And when you come see a lender with a quote from your financial institution, it gives them a place to start from. In fact, a lender like Go Auto Outlet reaches out to multiple financial institutions (and Go Auto Finance as well!) to find a rate that works for your needs. Lenders are surely able to find a rate that works for your needs.
The amount you’ll have to borrow for your loan is affected by multiple factors including the amount of the down payment you make. Putting down around 10% is generally advised by lenders because it will reduce the amount you’ll need to borrow, and it gives the lender a lot of confidence in your commitment.
When you finance with poor or bad credit, you’re likely looking at a higher rate of interest for the loan. But if you’re able to make your regular payments on time, you’ll build your credit might even get to the point where you can refinance. And then after a year of financing the vehicle and making your payments on time, your credit score will have improved greatly! At this point, you can also see if your lender is able to reevaluate your rate.
It might be possible to avoid a high rate altogether if you decide to cosign on a loan. Cosigning means using a family member’s credit to try to qualify for a lower rate on a loan. The issue with this, though, is that you’re tying their credit profile to how responsibly you pay off your loan. But this is an excellent way of building up your credit for yourself!
in summary – can I get a car loan with bad or no credit
In summary, it certainly is possible to get a car loan with bad or no credit, but it’s sound advice to:
- Consider building up your credit first so you can qualify for a lower interest rate when you finance. Student loans, for example, are an excellent way to build credit, especially since their interest rates are low. Consider clearing up any dept you have.
- If you need a vehicle right away, then go for it, but check in with your bank, credit union or Go Auto Outlet first to get both their opinion and a quote. They will help you determine what you’re able to afford.
- Get pre-approved for credit!
- Take your quote to Go Auto Outlet and have us shop around for a rate for you! We have connections with financial institutions all throughout Canada.
- Consider the advantages and disadvantages to making a larger down payment or cosigning on a loan. Refinancing is a good option down the road.
Above all else, keep the big picture in mind: you’re on your way towards vehicle ownership and you’re building your credit into something that will be there for you in your future. There are lots of reasons to be optimistic, but go in prepared and so you can secure a rate you can afford. Make your payments on time, build up trust with your lender, and get excited about your ownership and future financial possibilities! We hoped we’ve answered the question for you as to “can I get a car loan with bad or no credit?”