6 Pointers for Bad Credit Auto Loans in Calgary

6 Pointers for Bad Credit Auto Loans in Calgary
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While it may be that we have the best intentions of effectively managing our finances and maintaining a perfect credit score, this is often not always be the case. Once in the poor credit range, you are likely to find it is more challenging to obtain a loan, whether it be for a mortgage, a car or another financial necessity.

Living in Calgary, also likely means that you will require the use of a car to travel between the spread out areas across the city and province. Even with bad credit, there are still options available that can see you are approved for a car loan. If you are looking for a car loan in Calgary, there are some tips that can help you secure one, bad credit and all.

6 Pointers for Bad Credit Auto Loans in Calgary

1) First and foremost, perhaps the most effective thing you can do to make yourself more appealing with regards to obtaining a car loan, is to take steps to rebuild your credit score. Getting out of a bad credit situation can take a some time and some effort, however you are likely to find a car loan with better success and at a better rate. Finding out how to improve your credit as well as the common mistakes you may have made along the way is a beneficial step.

2) When approaching a car dealer for a loan, you should have an amount in mind for what is affordable. Examining your income in detail will help when you figure out how much of a down payment you can make. With bad credit, you will also want to look for ways to keep your payments as low as possible and not add to your debt. Making a larger down payment will likely lower your monthly payments and perhaps even the interest rate you will secure on your car loan.

3) When choosing a suitable vehicle, you will want to consider a variety of factors, not just its cost. While finding a lower priced car is a good thing, you should also make sure that you are getting a quality vehicle for your money. Important vehicle requirements to keep in mind, when looking for a car include, gas/ mileage efficiency, safety and reliability, long-term upkeep, and the variety of different uses for the car.

4) You are likely already aware that you are required by law to have your car insured before you get out on the road. However, it is also important to consider having a comprehensive Life Insurance policy. If you have one of these policies before you apply for the loan, you are more likely to be approved. This is because, the loan provider will know that in the event something happens to you, they will not be out of the money they have loaned without any means for reimbursement. While, this may seem somewhat callous, if you are worried about being approved for a loan and have bad credit, this is a valid suggestion.

5) You will also want to be aware of any Prepayment Penalties attached to your loan agreement. If you decide you want to pay back the loan at an earlier rate, make sure the terms of your loan allow for this without the fear of high penalty fees. If your goal is to improve your credit, and part of your plan to do this includes paying off your car loan faster, then you do not want penalties to derail your success.

6) Comparing prices and loan options across a wide range of car dealerships, is ideal. You can also shop around between other organizations such as credit unions, banks, and online lenders to secure the best deal possible.

There are many such auto dealers who specialize in auto loans for individuals with bad credit. A few options to look into in Calgary and the surrounding areas are: CarCo Auto, Varsity Dealership, and Roadsport Autocredit. You can gather information from their websites, as well as make phone inquiries. There are also many more auto dealers in the province of Alberta, who do offer bad credit auto loans, and you can look them up and compare prices.

Even with bad credit, it still remains a necessity for many Calgary residents to have access to a car. Not being able to secure a car loan may mean many individuals would not otherwise be able to get to work or get where they need to go. Fortunately, there are options for auto loans, even without a perfect credit score.

 

  1. Just be an educated consumer and make sure you understand all the terms of your bad credit auto loan and use it as a means to reestablish your credit.

  2. Hi Sarah

    Thanks for your message – I completely agree with your comments. It’s always good to start with a trusted lender & then move to other options if need-be.

    Thanks for your thoughts, Miriam :)

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