If you need a car but have a bad credit rating, rebuilding your credit through automotive financing is an excellent way to ensure that you get the car you need and a great chance to rebuild your credit. Rebuilding your credit can prove to be a daunting task, however, when you make your auto loan repayments on time can do wonders for your credit score even after consumer proposal or bankruptcy. Paying your auto loan on time also makes it easier to access loans in the future. Therefore, it’s particularly important to ensure that your car loan is affordable.
Financing a car with auto credit
It’s true that most financial institutions won’t consider giving you an auto loan if you’re in consumer proposal or bankruptcy. However, it’s also true that lenders face less risk in offering lenders car loans that in offering them car loans. Therefore, one of the best pathways ways to rebuilding your credit is through an auto loan, and the finance experts at Approval Capital can help.
We’ll negotiate with the banks on your behalf
Most lenders require a completion or full discharge of your consumer proposal or bankruptcy in order to give you an automotive loan. At Approval Capital, we connect you with various lenders who will approve you for a car loan while you’re still working to complete your financial obligations from your consumer proposal or bankruptcy.
A vehicle is a necessity for most families and individuals, and we’ll help you get the vehicle that suits your specific needs and help you rebuild your credit score in the process.
How fast can you raise your credit score using an auto loan?
Improving your credit score takes determination, effort and time. Although an auto loan can help you raise your credit score, it’s particularly essential to understand that it’s a slow build that can be accomplished through months or years of timely payments.
Therefore, it’s essential to plan out your purchase in order ensure that your payments fit within your budget and avoid overextending your payments.
Factors to consider when you need a credit rebuilder car loan
Compare what you make each month to what you spend. Try and spend less than 20% of your monthly budget on your car expenses including insurance, upkeep and insurance.
Stick to a payment that fits well within your budget. Think practical, reliable and affordable in order to make your payments on time and work to boost your credit.
Have a deposit
Planning ahead gives you ample time to save for a deposit. A down payment can help you get approved even when your credit rating is not perfect. Moreover, a down payment can reduce the total amount you need to finance hence lowering the interest chargers and monthly payments you’ll end up paying.
The bottom line
You can use an auto loan to improve your credit by simply making your monthly payments on time. Therefore, if you need an auto loan, Approval Capital is here to help. We can also connect you with dealerships within the Ontario, Canada area that specialize in helping customers with less-than-perfect credit rating secure car loans.