Is your bad credit a hindrance to buying your dream car? You can get a car loan in less than four hours in Canada despite your bad credit. Plus, you can improve your credit score with this car loan. Here is how you can repair your bad credit with a car loan.
How Can a Car Loan Increase My Credit Score?
A credit score ranges from 300 to 900. It is calculated based on your credit history and repayment activities. If you have a positive repayment history, you are likely to have a good credit score. Poor payment records can reduce your credit score. If you obtained a car loan with bad credit, you have an opportunity to improve your credit score.
You will be repaying your car loan each month in instalments. As you regularly repay the loan each month on-time, your credit score will start showing improvement. On completing the loan tenure without late payments and defaults, you will have a better credit score.
To know how much you will be paying as a monthly instalment, you can use a car financing calculator and find out the instalment amount for different tenures.
How Can I Get a Car Loan with Bad Credit?
It’s easy to get a loan to buy a new or used car in Canada, even with bad credit. Dealerships are often the best places to go because they are willing to work with people in any credit situation. At East Coast Financing, you can get approved for a car loan with bad credit. Make sure you have a minimum monthly income of $1,600. Apart from minimum income, ensure that you have proof of employment, a driver’s license, and bank statements ready.
If you want to buy a car within a budget, you can go for a used vehicle. Also, it’s easier to get approval for used cars with bad credit. You can use a car financing calculator to see how much monthly instalment you will need to pay for various makes and models.
Decide how much you can pay as the down payment. A large upfront payment can improve the chances of approval as you reduce the risk of borrowing. After you have decided on your budget and down payment, you can apply online and get approval in a few minutes.
Getting a co-signer can also boost the approval chances of your car loan. The good credit health of the co-signer decreases the risk for the lender.
If you are looking for Nova Scotia auto loans, fill out the short online form and drive home your dream vehicle even with bad credit.