Sometimes having private transportation is a necessity. For work, for example, or maybe just family life in the city. Regardless of your circumstances, you’re reading this article because you’re in need of a vehicle and are worried about your credit. There certainly are some considerations here, but by the end of the post, we’re sure you’ll have the knowledge and confidence to make a decision. Now, onto the topic, “can I get a car loan with bad credit in Edmonton.”
First of all, good for you for hesitating before applying for a loan you’re not sure you can afford. The truth is that bad credit and debt can mean you’ll have to apply for a loan with a higher interest rate, so the loan will end up costing you a lot more in the end. But it’s also true that there are ways to clear your debt and improve your credit first, or find a loan that works for your particular situation. Additionally, it’s a fact that financing a vehicle is an excellent way to rebuild your credit. But let’s start with the fundamentals first…
Determining Whether Your Credit is Actually Bad
Don’t just take your bank’s word for it; check it out yourself because it might not be as bad as you’re thinking, or there might be errors in your credit report. Order your credit report from a Canadian Credit Bureau like TransUnion. After you’ve got the report, what you’re looking for is your credit score. This number will vary, ranging between 300 and 850, and the average being in the mid-700s. If your credit is below 650, then you might be looking at higher interest rates for a loan. For further details on how to read and interpret your credit report, you’re more than welcome to contact us at Go Auto Outlet.
If you’re hoping for a loan with around a 12% interest rate or less, then you might want to take some steps toward rebuilding your credit, first. Otherwise, you’re looking at a higher interest rate with bad-credit car loans in Canada. If you’re not desperate for a vehicle immediately, then consider fixing your credit. You can rebuild in a relatively short period of time. And if you can find other transportation, like public transportation or carpooling, for example, then those might be the best options until you’re back on your feet.
So… Can I Get a Car Loan with Bad Credit in Edmonton?
Yes, you can. Consider rebuilding your credit first, unless it’s absolutely necessary that you have a vehicle today. If your credit rating is below 650, you’ll probably have to settle for a higher-interest loan. But 650 isn’t necessarily bad; bad credit could be considered having a credit rating below 600. Still, a high-interest loan isn’t necessarily a bad thing, so long as you can afford it. You’ll want to speak with a professional Finance Advisor about that. The lower your score, the higher your interest rate will be.
After you’ve checked your credit report and verified the info, you should touch base with your bank or credit union to get their perspective, or you can reach out to our Advisors here at Go Auto Outlet. In fact, a credit union is going to be more willing to work with you than a lot of banks would, because a credit union is structured differently from banks, making them more individual-oriented than profit-oriented. Wherever you’ve chosen to do your banking, go there first because they’re already familiar with your financial situation and can likely provide an accurate analysis of your financial future.
Getting a Bad-Credit Car Loan through a Bank or Credit Union
You already have a relationship with your financial institution, so there’s a pretty solid chance they’ll be willing to work with you to get a loan. And if you fall behind on your payments, they’ll likely be forgiving. Smaller banks might just value your business more than big banks, and credit unions are likely to treat you more like a person.
There’s definitely no reason to simply accept whatever rate your financial institution says you qualify for. Whichever number they come up with, you can take that number to dealerships like Go Auto Outlet, and we’ll do their absolute best to beat the offer.
Getting a Bad-Credit Car Loan through a Lender
Be wary of those lenders that say they’ll approve you no matter what, because they might just be hoping to take advantage of your financial situation. However, other lenders can be great places to go especially after you’ve gotten a quote from your bank. Dealer or lender interest rates are negotiable, whereas bank and credit union rates aren’t. And here at Go Auto Outlet, we’re professionals in the business…
Go Auto’s ability to negotiate extends beyond the desk; we can shop your credit profile around to a variety of financial institutions, trying to get you the absolute best rate possible. Some lenders specialize in bad-credit loans and have strong relationships with Canadian financiers, so there are lots of options available to all parties involved! Lenders will often have special offers too, saving you money.
The Bottom Line – Can I Get a Car Loan with Bad Credit in Edmonton
So what all this comes down to is that yes, you certainly can get a car loan with bad credit, but there are some considerations first:
- Get your credit report. This is the best indication as to what your financial situation is and might look like in the future.
- Clear up any debt first, if possible. Your debt affects your credit and is a big factor in what kind of loans you can qualify for.
- If you don’t necessarily need a vehicle immediately, try working on improving your credit first, so you can qualify for a lower-interest loan later.
- A bad-credit loan is considered any loan you, personally, will struggle with being able to afford. For some people, this is as low as 12%. Make sure both you and your lender agree 100% that you’ll be able to afford the loan plus interest.
- See your personal bank or credit union and get their opinion on things. You can request a quote from them and then shop around with it.
- Come to a lender like Go Auto Outlet to get a quote from us!
We hope that answers your question, “can I get a car loan with bad credit in Edmonton?” If you’ve got other questions about bad-credit loans in Edmonton, contact your trusted financial institution, or contact our Finance Advisors here at Go Auto Outlet. We’ll be happy to talk with you to discuss your financial future and vehicle ownership options!