From all corners of the country, there are people commuting to and from work each and every day by car. There may also be those that are currently seeking out a vehicle to help make their commuting and daily needs that much easier. Both of these groups of people are also likely to have one thing in common – the need for a car loan at one time or another.
Taking this a step further – another portion of this population may also find that they have a bad credit score and may worry a great deal about finding suitable vehicle financing, at all. With that being said, thankfully there are companies that can offer more loan opportunities to individuals with a broader degree of credit ranges, including those that have entered into the ‘bad credit’ zone.
At Canada Drives, we specialize in assisting those individuals looking for car loans we know they really need. The way it works is simple: we will help you find a car loan from a lender who we already know is more willing to approve car loan for individuals with lower credit scores. In the process, we can also provide support to you as you look to improve your credit score and your overall financial situation.
In the meantime, as you start thinking about obtaining your car loan you can also take steps to improve your credit score on your own. Not only will this allow you to have access to more diverse loan opportunities, it will also enable you to set yourself up in a more stable repayment position.
To help you get started, here are 4 ways you can improve your chances of being approved for a car loan now:
1) Don’t Miss Monthly Payment Deadlines
If your credit score has slipped as result of missed or late payments on any of your current loans or credit cards, the best way to help it bounce back is to get into a habit of paying them off on time with a higher level of consistency. While it can take several months to see an increase in your credit score, the sooner you start keeping up with each payment, each month or whenever it is that the due date comes around, the sooner you can improve your credit and in turn your chances of gaining loan approval.
2) Save Some Money
Another method of enabling loan access is to try and have some additionally money saved. Ultimately, car loan lenders and lenders in general, want to see that you are able to pay off the loans over time. With past payment success and money in the bank,, you can improve your odds of approval. If the lender sees that you have money in your account and your balances are not close to zero it can be an added bonus.
3) Be Prepared to Make a Down Payment
On top of having some additionally savings, it will also look good if you are prepared to make a down payment. Loan providers can often help you secure a car loan with more favourable terms if you make a decent down payment on that vehicle. As a result of this down payment which will go off the top of the loan balance itself, you can lower the overall amount you will be required to pay back. With smaller monthly payments and/or a shorter loan term – chances are lenders will approve loans for borrowers who can more feasibly pay it back with success on your side.
4) Have Your Papers in Order
Lastly, in order to prove yourself to be creditworthy, it is important to have some vital documents pulled together before you seek out your loan. For example, there is a list of items you will likely be required to show to the loan provider or auto credit source. Some of these will include, 3 or more months’ worth of pay stubs that show you have consistent income coming in, and sometimes bank statements will also be required. Further employment history is often also requested as lending parties want to identify your past employment patterns, i.e. have you been able to keep a job for a long period of time.
Some other pieces of information required to have on hand are your driver’s licence as well as address and contact details. All in all, by showing up with this paperwork in hand, you also demonstrate to loan providers that you take your loan commitments very seriously and are prepared to manage them in a responsible manner.
Overall, it is this last statement that sums up how you will want to approach the car loan process – be prepared. The main benefit of contacting Canada Drives however, is that we are here to support you through this process and we do offer a simplified loan process that is aimed to limit any stress you may feel about being able to obtain loan approval.
If you are looking to secure your car loan as soon as possible – just knowing that it can be achieved even with bad credit can help. The fact that you can improve your loan opportunities by performing some maintenance strategies will help get you off on the right foot and provide you with one giant step closer to car ownership.