Bad Credit Car Loans Calgary – Confused?
Equip yourself with the facts about car shopping with bruised credit
Car shopping can be an anxiety ridden experience let alone car shopping with bad credit. Purchasing a vehicle with bad credit automatically puts you at a disadvantage when you walk into a dealership. Firstly you feel more uncomfortable and perhaps a little ashamed that you won’t be able to get a prime interest rate. The truth is however that more people than you realize are in the exact same situation. You don’t have to be at the mercy of the dealership just because you are not able to get prime interest for a vehicle!
Understanding your credit situation before going to a dealership
Typically when applying for a subprime auto loan the lenders will only look at recent reporting items on your credit report. So if you have been making regular payments on your current vehicle or home this is very good. If not you may have to start with a higher interest rate and prove yourself.
It is important that you pull your own credit report. Another key qualifier is how much credit % you have used on your allotted credit. If you are at 80-100% of your current loans the lenders will frown on this.
The interest rate you are offered from any dealership will depend on their relationships with lenders. There will be cases where you can get a couple of percentage points off depending on the vehicle you are looking at. Keep in mind that purchasing a newer or new vehicle is important with a subprime loan because lenders don’t really want to finance high mileage or old vehicles. Choosing a vehicle with a high resale value will be of utmost importance to you.
Renegotiating your bad credit car loan interest rate
The single most important thing to remember here is that you do not have to remain in a high interest bad credit car loan for longer than a year. If you are on time for each car loan payment for a year you will be able to lower your interest rate. This is a promise. CALGARYDRIVES can help you along the road to re-building your damaged credit. We have been doing this for a decade. Apply today and get your credit back on track.
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