Get a Car Loan With Bad Credit

Getting a Car Loan with Bad Credit

At BC Auto Credit, we know that things can happen that are out of your control. It is difficult to stay ahead 100% of the time, particularly when it comes to finances. We know situations can arise that may prevent you from paying your bills on time, or in full, which can unfortunately be detrimental to your credit score, in turn making it challenging to obtain a car loan. Here are some tips for getting a car loan with bad credit:

Understand Your Situation

When looking to get a car loan with bad credit, it is important that you understand your current situation. It is a good idea to run your credit report to see how it would look to a lender. If you have any outstanding items, take action to pay these off as soon as you can. While having outstanding collections or bills does not necessarily mean you won't get approved, you do not want to encounter more difficulties by taking on another loan you are unable to pay.

Have Documentation to Show you're a Good Credit Risk

When you visit our BC Auto Credit, it is important to bring along relevant documentation 1) to establish your identity and prove that you are making an income, and 2) to confirm that you have a history of making monthly payments on time. Some documents you should have prepared before visiting us include proof of income (ie. You most recent paystub), utility bills (if applicable), your drivers license and contact information for personal references. If you have completed a consumer proposal or been recently discharged from a bankruptcy, it is important to provide documentation.

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Get a Car Loan After Bankruptcy

There is a common misconception that it is impossible to get a car loan after bankruptcy. However, this misconception is false. The reality is that most lawyers or trustees recommend you start rebuilding your credit as soon as possible. Because getting a car loan is one of the fastest ways to rebuild your credit, getting a car loan is an ideal way to reestablish your credit after bankruptcy. Here are some tips to help you get a car loan after filing for bankruptcy:

Be Prepared to Pay More

It is important to manage your expectations when you get a car loan after filing for bankruptcy. While getting the loan is not impossible, it is likely you will pay a little more for your vehicle. Bankruptcy may be viewed as somewhat risky to lenders, and so the cost of the loan (interest rate) and the cost of the actual vehicle is likely to be higher than if you had a perfect score and a history of paying on time.

When rebuilding your credit following a bankruptcy, It is important to ensure you can afford a financed car. You do not want to end up in a situation where you cannot afford to pay your bills. Figure out where in your budget the money is going to come from, and once you do get approved and into a new car, ensure you make your payments on time and in full.

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Get a Car Loan With No Credit

If you have no credit history, but need to get a reliable vehicle, we at BC Auto Credit are here to help. Individuals with no credit history may feel like they do not have any viable options, however we know that it is certainly possible to get a car loan with no credit history. Here are some tips for getting a car loan with no credit:

Have a cosignor

The easiest way to get an auto loan with no credit is to have a consignor sign with you. A consignor is an individual who you trust that ultimately promises to take on the payments if you default on the loan. It is important that your consignor have good credit history in order to co-sign for you. In most cases the co-signor must be a partner/spouse or an immediate family member.

Have your paperwork ready

When you are trying to get a car loan with no credit, having the appropriate paperwork ready will be extremely beneficial when you apply for a loan. When you meet with one of the credit specialists here at BC Auto Credit, make sure to bring financial documents to prove your identity, income, and that you make your payments on time. If you have rent receipts or utility bills, make sure to bring those along as proof of on-time payments. Bringing along paystubs and tax returns from previous years will also help you with your application.

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