Anyone in the financial world will tell you that getting a loan, even a car loan, can be difficult if you suffer from bad credit issues. Financial institutes love people with a pristine credit history and a high credit score. It tells them that the person is financially responsible and will pay back the loan in time. If you are a victim of bad credit, you will inevitably face the rejection stamp on your loan application.
So what are your options? How can you get a loan with a bad financial situation and poor credit score?
Look at your Credit History
Don’t let others tell you that your credit history is bad and hence, you can’t get the loan. You can easily request your credit report form Equifax or TransUnion Canada. Find the points that are causing the negativity in your credit history.
- The amount of debt piled up.
- How regular are your debt payments?
- The various interest rates you are dealing with.
Watch out for any discrepancies in your credit history. A credit card payment you didn’t make or a loan payment that has not been recorded. These wrong recordings will have a negative effect on your credit score and you need to get in touch with the credit bureau and fix them.
Keep Your Options Open
When it comes to lending agencies or car dealerships, keep your options open.
Every lending agency has different procedures and criteria when accepting a car loan application. Some have very high standards where you are required to have a minimum credit score, while others are quite lax.
Car dealerships often have their own offers in place when it comes to car loans. Ensure you explore many car dealerships and know all the loans they have on offer. Discuss your credit situation with them and check if they can accommodate you.
Get a Co-Signer
A co-signer is a good option when you have a bad credit. A co-signer basically says that she will be responsible for you financially. Ideally, you should have a co-signer who has a good credit score. Even though your credit situation is not good, your chances improve with a co-signer. However, there could be instances when a co-signer won’t be enough to convince a lending agency.
Insta Auto Loans
You are here, reading our blog, Insta Auto Loans is here to help you get a car loan instantly with no hassle. Too many lender agencies and financial institutes make the whole process of lending too difficult. They are searching for the perfect financially responsible person.
Bad credit score, a terrible financial situation, Insta Auto Loans is willing to overlook that and grant a loan. Not only is the whole process easy, but we also give you the loan swiftly. No more waiting for your loan application to get approved. With us, you can go out and buy that car immediately!
