All Things Automotive

So you say you have bad credit and are unsure that you’ll be able to get a car loan in Cambridge? Stop worrying! Many dealerships, such as ours, offer bad credit car loans in Cambridge to folks that have fallen on tricky financial times. Regardless of whether you have a bad credit history or whether you are still in a tough financial spot, we’re happy to help you get a car that will make your life easier - and that will be reliable for you.

But did you know that getting a bad credit car loan in Cambridge can actually help to improve your credit? By taking steps to improve your credit now, you’ll be well on your way to getting good credit car loans in the future. Here’s what you may need to know about how your bad credit car loan can actually help you:

You’ll Pay A Little More

Obviously, if you currently have bad credit, you’ll pay a little bit more for your bad credit car loan than you would have to if you were about to get a good credit car loan. However, by paying that little bit more each month, you’ll be able to build up your bad credit to good credit and, ultimately, be able to secure good credit car loans down the road. Speak with your lender to learn exactly what your interest rate would be.

Building a Track Record

By taking out a car loan in Cambridge and repaying it in planned monthly increments, you’ll be building a solid track record that will improve your credit. Future lenders will see that you have been able to take out a sizable loan and repay it on time, which will help them to have faith in your ability to repay their loan. Therefore, taking out a loan will help your credit - but only as long as you are able to actually repay it.

Building Assets

In addition to rebuilding your credit, you’ll also be taking on more financial assets by buying a car. These financial assets will help to make you a good contender for future loans as well. Having more assets, such as vehicles and homes, improves your financial record and gives lenders even more faith in your ability to repay a loan.

Contact us today at http://cambridge.canadamotorcar.ca/to learn more about how getting a bad credit car loan can help your unique financial situation.

Many of our customers   do not have a clear understanding  of what a credit score is and how it can impact their day to day life  for  years to come  . In a nutshell , a credit score  is a basic report  that outlines  an individual’s  financial investments , risks , and  repayment of those loans  . Many  things show up and stay  on a credit history, including credit card account openings, mortgages, loans, and even other  credit checks. These credit checks, or pulled credit reports, may  negatively impact  your credit score making you look  like a credit seeker, so you need to keep them to a minimum.

If you arelooking for ways toimprove your credit so that you can get a lower carloan interest rate and higher  dollar  amount, there are some  means that you can and should take . However, there are also some things that you shouldavoid.  The following  are the top 3 things people do that can negatively impact their credit score :

1.  Change jobs. Lots  people are forced to change jobs due to different  circumstances, such as a lay-off or company closure, or downsizing.  However , if you are able to minimize  the amount  of times you change  jobs, or you are able to stay in the same industry,  you will have a lower credit risk. 

Lenders want toknow that their customers  have some degree of stability in their jobs  so that they can be confident  that the person  will be able to pay back the loan as long as the borrower continues to earn a steady income. But , if you have a history of many job changes , lenders may wonder how you will pay off a loan or continue to make payments while you’re between  jobs. Lenders may also have questions about your income stability and your lifestyle stability that could  potentially cause them to wonder if you are a high risk financing client .

Of course, it is possible to get a loan if you change jobs frequently. Simply  be prepared to explain  your job changes to the lender. You’ll also want to tell the lender your solid plan  for being able to pay your payments regularly even in the event of a future job change.

2.  Open store credit cards. Store  credit cards are great,  right? They  help you save money on purchases that you make at a store and they offer additional specia l benefits .However , each  open credit account that you have, including  department store  credit cards, can hurt your credit history. A lender’s typical view on multiple open credit card accounts is: the more open accounts you have, the more chances you will fall into debt with those other lenders . As well  the interest rate is almost always  quite high on store credit cards, and they take a very long  time to pay off .  You should restrict the number of cards that you have and try and pay them off as quickly as possible.

3.  Move residencies. Moving alone will not hurt  your credit score . But , if you are trying to improve your credit, then staying in one place for alengthy amount of time can help to prove to   potential lenders  that you have stability and are responsible . They will also be more likely to trust that you can make  regular payments and will be able  to contact if they need to reach you after they extend the car loan in Ottawa.

Let our credit specialists give you more information about improving your credit,  or to speak  with a credit specialist aboutgetting a car loan in Ottawa  now .