People in Ontario are often interested in bad credit car loans because they have a hard time getting approved, but we are here to offer a solution. You don’t have to struggle to get a loan even though you have poor credit when there are people who want you to get approved and are willing to help you, regardless of the situation with your credit score.
Have you ever applied for a vehicle and didn’t get approved due to your poor credit? Whether you’ve looked for auto loans for bad credit on Google or came across an ad on Facebook, most dealerships offer the same things. You get your hopes up and think you’ve found what you’re looking for, but eventually, you get denied and your credit score goes down again. There must be another way, and surely there’s an option where this doesn’t have to happen.
Bad Credit Car Loans in Ontario
There are over 2000 vehicle dealerships in Ontario, and most of them, if not all, brag about their bad credit auto loans. It makes you think that you will finally get your auto loan with no credit and you already see yourself driving your new car… But then, you soon realize that what they brag about is not really what will get you behind the wheel.
The fact is, most of them will run a credit check, ask for some personal information and instead of getting a vehicle you always wanted, you will end up with a lower credit score than before. Does it really have to be this way? You’ll be glad to learn that a car loan with bad credit is still very possible, and you will be able to get the car you wanted, without these unnecessary problems.
It’s important to emphasize that car loans can actually help you build credit.
How Can Bad Credit Car Loans in Ontario Actually Help You Boost Your Credit Score?
If you’re not sure where you stand when it comes to your finances, before applying for guaranteed car finance, it’s best that you first find out what your credit score is, and see in which group it falls in.
Potential lenders and creditors, such as vehicle dealerships, take credit score into consideration when deciding if you are eligible to get a loan. Also, credit card companies and banks rely on the credit score. Simply said, a credit score is a number that tells lenders how likely you are to repay the money they lend. What does this mean?
We can split credit scores into 5 groups:
- Poor credit score 300 – 559
- Fair Credit 560 – 659
- Good Credit 660 – 724
- Very good credit 725 – 759
- Excellent credit 760 – 900
A credit score under 560 is considered as a bad credit score. So, is that it? Does this mean that you won’t see yourself behind the wheel of your dream car? Can you still get a car loan with bad credit? There is always an option for guaranteed car finance, but let’s look at some other important information before we get to that.
First, we owe you an explanation regarding how getting auto loans for bad credit improves your credit score. All it takes is for you to make car payments every month and on time. You might not know this, but your payment history actually contributes to 35% of the credit score you have. It actually makes a lot of sensel. Having a good payment history lets the lenders know that you are reliable when it comes to borrowing money and that you will certainly pay them back. Do you know what a better credit score means? It means that you will be able to get better interest rates in the future!
Get a car loan, make sure to make payments on time, and watch your credit score get better! We’ll talk more about this later, along with other ways car loans can boost your credit score. But what about the interest rates for car loans for bad credit Ontario has to offer?
We’ll get to that in a minute, but it’s important to mention here that, besides your credit score, some lenders will also look at your income as a factor. Usually, $1,800 monthly, before deductions and taxes, is the minimum income that can qualify you for the loan. However, your income is not the deal-breaker here. Of course, having steady income definitely helps, but getting a bad credit car loan is still possible regardless of your income, as long as you choose a lender that truly cares about getting you approved for a bad credit car loan.
What is the Average Interest Rate For a Car Loan With Bad Credit?
You want to get a new car, but you’re worried about what interest rate for a car loan with bad credit is. We’re going to answer it right now.
The average interest in Ontario is around 10-19.9%. It depends on a credit score and the vehicle you want to finance. If you are interested in getting a loan for a new vehicle the interest rate is lower.
Important: Watch out for those who claim that they specialize in bad credit car loans. Before you apply and leave your information, check their online presence. Look for reviews on Google and Facebook. If you see too many bad reviews, that’s a good sign you should stay away from that car dealership. Nevertheless, a vehicle dealership that has an average 5* rating is also not the best choice. There isn’t a company that hasn’t made any mistake. It’s, in fact, very likely that they have paid for fake reviews.
So, how to get approved for a car loan despite your bad credit? Who can you trust?
The dealerships claim that bad credit auto loans are the most common auto loans they approve, so how do you choose the right dealership?
Keep in mind that, whichever dealership you pick, there are some minimum requirements you need to meet to get approved. Our team of OMVIC certified senior finance managers will help you and guide you through the process, making it easy for you to obtain the desired vehicle. Getting an auto loan with no credit, or bad credit auto loan, doesn’t have to be hard, in fact, we make it quite simple for you to finally drive the car you want.
The Process Of Getting Approved
Let us explain the process, so you could understand everything that’s going to happen.
1. The first step is the application process. You need to leave some basic information with us so we can review if you are eligible to get a vehicle. But what about your credit score? You do not have to worry about your credit score because we don’t run credit checks after you apply. After you’ve filled out the application,, you’re one step closer to getting your auto loan regardless of your credit.
2. The second step is getting in touch with a professional who can assist you in finding the right vehicle for you based on the monthly payment you can afford. If you are interested in poor credit car loans, this is the time when you should emphasize that.
3. The third step is the easiest for you. While our agents are working on your application, you have nothing to worry about. All you need to do is to just wait for a call and be ready to pick up your vehicle.
Is that it? Can getting bad credit auto loans really be that easy? How long does it all take?
In some cases we might not be able to get you approved in 24-48 hours but, usually, we don’t need more time. Truth be told, we are not the only vehicle dealership in Ontario that offers fast and efficient service, but we are one of the few ones that will surely care about helping you get your bad credit auto loans.
But what if I don’t qualify for auto financing for bad credit?
Sometimes, not qualifying for a car loan with bad credit doesn’t mean you can’t get approved. It means you didn’t knock on the right door. Most dealerships will tell you that they can certainly help you get approved and that’s not necessarily a lie. However, what they don’t tell you is the interest rate you will be paying in the next few years. We believe that all the information regarding auto financing for bad credit should be completely transparent, and that is why you can read everything you need to know about car loans for bad credit Ontario has to offer right here.
Why is Getting a Bad Credit Car Loan a Great Idea?
Getting auto financing for bad credit is a good idea because it’s the fastest and most efficient way to build your credit. Without going into detail about how you’ve come to have poor credit, let’s hop on to the part where we explain how bad credit auto loan benefits customers and what steps you need to take.
1. If you are paying back your loan on time while keeping a low balance on your credit card, your credit score will get a small boost.
2. If you succeed to obtain a car loan with cashback, you can use the money to cover your credit card balance and that will reflect as another credit score boost.
3. Car loans are the easiest loans you can get approved for. Bad credit Autos partners with dealerships all over Ontario, meaning you can get approved even if your score is below average.
Proven Tip to Improve Your Credit Score Before Applying For A Car Loan
Before thinking about getting a car, you should know where you stand. Based on the credit score you will be able to get familiar with the interest rates you can expect. This will help you understand why you should choose Bad Credit Autos if you’re thinking about what car loans for bad credit Ontario has to offer.
Why Bad Credit Autos is the best choice for bad credit car loans?
When we started the company, we had one goal in mind. Our goal was, and still is, to get our customers approved regardless of their credit score. The truth is, too many people have complained about their financial situation and, with the COVID-19 outbreak, it became even worse. We understand the struggles you’re going through, and we want to help you out. You should know that all of our dealer partners have the same policy.
The best part is that everything can be done online, so you do not even need to leave your home to get a bad credit car loan. Furthermore, a senior finance manager will be in touch with you and will keep you posted about the progress of your application.. We do not run credit checks before we get in touch with you and before we have your approval to do so.
We approve people with no down payment, but down payment can also help you build your credit.
Thousands of Canadians are now driving the cars they want, thanks to our help and regardless of the credit score that they had, and we look forward to helping more of them. We care about your wishes, and our goal is to make them come true in the easiest and fastest way possible.
– Don’t let anything stop you from getting the vehicle you want! Choose us to get you in the car of your dreams, because we will do everything we can to help you achieve your goal regardless of your bad credit. You can get a car loan from us, and we will make the process fast and simple because our goal is the same as yours – to get you approved.
– Don’t waste any more time with dealerships who don’t have the same goal in mind as you, because you need someone who will be willing to help you, no matter what. Nothing should stand in your way of getting a new car, and we’ll make sure that nothing does.
If you are interested in affordable vehicle financing, feel free to get in touch with our dedicated managers, and learn more about your options. Rebuild credit and get a vehicle using our service and expertise. Check your options today! Free of charge, no obligation to buy!
Apply Today And Drive Your New Car Tomorrow!