Can I Get Approved for Car Financing With Poor Credit?

With poor credit, you may feel like your car-buying options are also on the poor side of things. The good news is we have financial solutions for individuals who have struggled with credit in the past. To help you get beyond where you are now with your credit rating, we offer solutions that allow you to get approved for car financing with a bad credit rating.

One of the best things about getting approved for financing when you don’t have a great credit history is you can improve your credit rating. You need to start working your way toward better credit at some point, and our financing solution allows you to do that. By staying in contact with our financial representatives and letting us know what your financial situation is, we can help you make sure your payments are on time and in full so it makes a positive impact on your rating.

Something to keep in mind is you will have a lot of options when it comes to credit approval for individuals with bad credit. No matter the type of automobile you are looking for, we will have something that meets your needs, and you will be able to purchase it with the help of financing. If you need a small sedan, we can make that work. If you are looking for a van, we can make that work as well. Your options don’t have to be limited just because you have struggled financially in the past.

When you need a new car, don’t hesitate because you have bad credit. You do have options and we are here to help. Our solutions allow you to get approved for auto financing so you can improve your credit rating and purchase the car you have always wanted. Don’t wait to make these improvements to your life. Speak with a representative today to see what you need to do to get started.

How Credit Impacts Car Financing

Credit is one of the important factors that go into getting the best car financing in British Columbia. Many of our car loan customers are aware of the importance of credit and their credit scores, but they are not too certain of what credit exactly is or how it affects them. Here’s a brief overview of credit scores and how they may impact your car financing:

Credit scores are made up of five different categories. Each category carries its own weight and amounts to a different percentage of your overall credit score. Here’s what you need to know about these categories:

Length of credit history – this category amounts to 15 percent of your entire credit score. The length of your credit history is generally determined by the first account that you opened, such as the first credit card or bank account. It’s best to keep long-standing accounts. Therefore, be sure that you do not simply jump from one credit card to another or one bank account to another.

Payment history – your payment history will amount to 35 percent of your credit score – making it the most important aspect of your credit score. When going for car financing, it’s important to be able to show that you have a history of making payments on time. Therefore, if you have a bad credit score, try focusing on repairing this aspect of your credit score to get a boost. Also, taking out a car loan that you repay can help to repair this aspect.

Types of credit used – a credit card is a different type of credit than a mortgage. This category of your credit score amounts to ten percent of the entire score. To boost this section, limit the number of credit cards and general consumer credit you have and shoot for more long-term, asset building credit lines, such as a car loan or mortgage.

Amounts owed – the amount of money that you owe accounts for 30 percent of your credit score. This category is based on a combination of percentages that you owe on credit limits as well as raw money that you owe. Of course, try to limit the amount of money that you owe on consumer credit lines, such as credit cards.

New credit – this category makes up 10 percent of your credit score. New credit may be a concern for lenders because new credit may be something that you’re still adjusting to. Therefore, try to limit the amount of new credit you have when applying for a car loan in order to get the best rates.

At Vancouver Auto Credit, the best place to get car loans in British Columbia, we look forward to helping you get a great car loan or to improving your credit so that you can qualify for lower interest rates and higher loan amounts. Contact us today for more details or to get started!

Can Credit Cards and Bad Credit Car Loans Be Combined to Rebuild Credit?

A lot of times, credit counselors advise their clients to choose between credit cards and big purchase loans to rebuild their credit. Bad credit car loans maybe a source for such a strategy. When compared to each other, the credit card is often seen as a less worthy method for credit score rebuilding. This is because revolving credit can saddle consumers with high interest payouts and slow credit rebuild.

Car loans function as installment credit, on the other hand. This means that routine scheduled payments of a set amount are made without the occurrence of surprise interest or fees. Generally, the effects of keeping such a schedule show in an improved credit score more quickly. Some people may wonder if there is a way to combine efforts to good effect, though.

While traditional credit cards extend money as a loan, secured credit cards extend funds that you have backed up via a deposit of typically $200 or more. Though you have put in money to secure it, your monthly payments must come from a source other than the secured amount. The secured amount can only be used to pay the default if your credit ever falls back into arrears. Meanwhile, high interest rates are to be expected with secured credit cards.

Bad credit car loans on the other hand are available as installment credit. This means that the lender schedules your payments for monthly repay at a consistent amount with the fees included. You still pay interest on the loan, but your monthly payments are the same for the duration of the loan. Some people would suggest that securing a credit card to pay the loan might be a good idea, but combining these two forms of credit to rebuild can be dangerous and costly. Essentially, you would be paying interest on two loans for the privilege of paying off one.

In the end, the better idea by far is to work with us at Vancouver Auto Credit for your bad credit car loan and help simplify your payback schedule. Keeping up with such a loan is not difficult and can be the key to your future credit success.

How to Evaluate a Used Car Dealership

When you are looking at used cars, you have to evaluate the dealership and the vehicle to ensure you are getting the best deal. It is important that you are working with a dealership that has a good reputation for financing options, customer service and vehicle quality. There are a few tips you can use to evaluate them to ensure that they will provide the best service.

Read Plenty of Reviews

One of the great things about the internet is that you can find information about any business, including car dealerships of all sizes. You want to simply Google the name of the dealership and the location, including both city and state. You will likely get a number of results for review pages so you can really dig deep and see what past customers have to say. It is best to read at least 30 reviews for a comprehensive view of the dealership’s reputation.

Check the Better Business Bureau

When you are on the BBB website, you can get more information about how customers feel about the dealership. You will also see the rating. They use a number grading scale just like you had in school. So, an “A” rating is best and an “F” rating is worst. Head to the Dealership

The last part of the process is to see how you are treated once you get to the dealership. Consider how they accommodate you and the level of customer service that you receive. You can then look at the big picture and see how your personal experience matches up to the online reviews and BBB information to decide if you will work with the dealership.

It is ideal to evaluate the dealership before you even step onto the lot. Most of these tasks can be done from home when you have spare time. Just look thoroughly and keep an open mind during the process to ensure you get the information you need.

How to Secure the Best Car Loan

You may have spent countless hours looking for the perfect new car and are eager to move into the actual car buying process. However, if you plan on using a car loan to help pay for your new vehicle, then you should spend an equal amount of time looking for car loans. Here is how you can make sure that you secure the best car loan available to you.

Pay Attention to the Pricing

When you are looking for a car loan you should take into account how much you will have to pay per month as well as how much the loan costs overall. This can help you avoid falling for bad deals, which are more prevalent than many people realize. It is important to have an idea of how much you are able to spend before you begin shopping around for a car loan. Having a budget in place can help you avoid getting locked into an adverse deal.

Loan Duration Matters

Another simple way to ensure that you are securing the best car loan is by paying attention to the overall length of the loan. Generally, the shorter the loan is the better. Some people hesitate about getting shorter loans because it tends to mean the payments are more expensive month to month. However, if you want to save more money in the end, then you may want to consider getting a short car loan.

Sometimes people choose longer loan terms since it allows them to space out their payments. The biggest downfall to longer loan terms is that the interest rates can add up over time. In the end, the most important thing is to choose a car loan that you can afford to pay for each month. As you can see, purchasing a car loan takes just as much thought as buying a car. By studying the overall costs and the loan length, you will be able to find the best car loan.