BAD CREDIT AUTO LOANS ALBERTA: WHAT TO DO IF ARE DECLINED FOR AN AUTO LOAN
Posted by John on May 14th, 2018
One of the worst experiences anyone can have is getting rejected for a bad credit auto loan in Alberta. Not only does it lessen your chances of buying a newer vehicle, it can also discourage you from taking further steps.
While the feeling can be painful and frustrating, it should not be enough to make you stop trying altogether. Most times when people are declined for an auto loan in Canada, it is often because of a poor credit or blemishes on your credit report. If this is where you find yourself at the moment, there is still hope !
Applying to a dealership like Free Auto Credit can greatly improve your chances of getting approved for an Alberta car loan that fits your financial situation. For over a decade now, we've actively been in the business of connecting Canadians like you with finance partners who eventually make your dream of owning a newer vehicle a reality.
However, just like any other reputable dealers around, we always encourage potential customers to do certain things in order to make the most of their second chance.
Here are a few suggestions that will help get you financed:
Get a recent copy of your credit report
Mistakes on your credit report can reduce your ability to qualify of for financing or even ruin your chances of getting approved at all. So before you proceed to get an auto loan in Alberta, make sure you request an up to date Credit Report from the right authorities and correct any errors you find.
Obtaining and going throughyour Credit Report doesn’t only help you prevent anomalies, it can also boost you confidence when on the negotiating table. May times your credit situation is not as bad as you think !
Go for a car loan you can afford
Before you get excited about getting that beautiful car you came across recently, please try and find out about the total price and the see if you can afford it. We strongly advise against going for a car that is beyond your budget because you’re likely going to have a hard time paying it off.
Work out a price that works for you and choose a vehicle that fits into the price. This can really help you to pay off the loan in a shorter period since the monthly payments will be more affordable. To get an idea of monthly payments for various loan amounts, check our website here: https://www.freeautocredit.ca/calculator
Make a down payment to lower the car loan
While there are options to finance your Alberta car loan without a down payment, such options usually leaves you with more money to pay back.
The best way to reduce the entire payback amount of your loan is to pay some money upfront. We recommend starting with at least 10% of the total cost of the vehicle you want to buy. If you lack the funds, then you may want to consider saving up for it, as a good down payment will help you save a lot of money in interest charges. It can also greatly improve your chances of qualifying for a loan.
Get a Cosigner to reduce the risk of the car loan
A cosigner is someone who signs your loan agreement with you and agrees to make up for any payment you miss along the way. In other words, the person agrees to share the responsibility of paying off your loan just in case you default any point.
By sharing the responsibility of the loan with you, the cosigner ultimately reduces the risk associated with thecar loan. This is why dealers are more willing to lend when there’s a cosigner available.
Take your bad credit from poor to good
The best way to assure yourself of a second chance is to build up your credit before you apply for another auto loan alberta. This will not only improve your chance of getting approved but will also reduce the cost of financing the loan.
By now, you may already know about the high interest rates on bad credit auto loans alberta and other parts of Canada. Many dealers and finance institutions charge extremely high interest rates. With a good credit score, the risk of lending to you definitely reduces, and ultimately cuts down the interest rate.
Like it? Share it!
About the AuthorJohn
Joined: December 27th, 2014
Articles Posted: 5,403
More by this author