Getting a car loan in Ottawa when you have bad credit can be one of the best ways to re-establish your credit. However, the loan rate you received was probably less than fair, once you are over the joy from having a new car. A 22% car loan rate sure adds up quickly.
Well you win some you lose some - right? Nothing left to do but wait it out. Wrong. You always have options.
While the contract you signed does mean that you are stuck with that new car loan rate until you pay it off, you don't have to wait for the loan to come to term for that to happen. The best way to lower that car loan rate is to go to another lender and get a better rate. Basically, you have to refinance your car. This can save you thousands of dollars if you play your cards right.
Here’s how it works: You take out a new loan at a lower interest rate and use it to pay off your old loan (with the higher interest rate). Provided you have a good repayment record on your present loan (showing that you paid on time every time), the bank or lender should have no problems offering to refinance at a rate that is lower than your present car loan rate. The finance speacialists at Canada Motor Car are here to help you in refinancing your car.
The best place to get a great deal on a new car loan rate is the internet. While traditional banks are an option, a lot of companies on the internet can generally give you a great deal on a new car loan rate. This is because the internet gives you access to a variety of special finance firms who have many avenues of revenue available and will advocate on your behalf. Watch out for application and processing fees, which can quickly add up to a real headache when refinancing your new car.
Your credit score is the most important factor when it comes to car loans and rates. The better your score, the lower your loan rate, as there is lower risk for the bank lending you the money. Your credit score is the key to getting a credit card, a great mortgage and even sometimes insurance rates. Check your credit every year and look closely for any mistakes that may have been made on it. Remember, the person deciding whether or not they should approve you on a loan is often going solely on your credit history. You can apply for a better car loan rate after as little as 6 months of solid payment history.