What credit score do you need to get a car loan in Canada
What credit score do I need to apply for a car loan in Cambridge Ontario?
Under 500 only means you’d probably not qualify for a juicy car loan interest rate, however, though, this doesn’t mean you’ll not get a car!
If you’re worried that your bad credit will keep you away from getting a vehicle in KW, then you’re dead wrong.
According to the reports made public by Experian at year end 2017, the ideal credit score for new cars was 712, and 654 for fairly-used cars. You’d be surprised to learn that nearly 20% of car loans went to people with <600 credit scores.
Statistics of car loan rates in Canada
Someone with a 700 score would probably see a 5% auto loan rate on a used car compared with a 15.1% rate for someone having a score below 500. A 5-year loan of $20,000 gets you a $483 monthly payment compared with $378 that’s being paid by people with a better score. Some states, where allowed, charge higher insurance auto financing rates for people with bad credit.
There are a lot of used car dealerships near Kitchener Waterloo willing to offer you a sweet deal even with your bad credit
Whether you’ve got no credit history, whether you’ve once been bankrupt, or you’ve got a bad score, there is always a bad credit car dealer in Kitchener available to cut you a deal, everyone deserves a car, it’s a necessity!
Some car loan lenders are more concerned with your income and job time than your bad credit history; Our used car dealership is a reliable auto sales finance firm serving Cambridge, Guelph, Kitchener Waterloo, and its environs.
Our finance specialists will help you finance your used car in a matter of minutes. It doesn’t matter if you’ve got no credit history or if you’ve got a bad score, we’ll always cut you a good deal.
But how can I redeem my score?
If you’re keen on improving your score or building a fresh credit as a new Canadian, the FCAC “financial consumer agency of Canada” has tabled some tips that will help you redeem your score
• Pay up your bills at once and in full. Be it rent, utilities, internet, or whatever.
• Don’t apply for credit whose sum is larger than your past credit application
• Open a loan, bank, or credit accounts with small limits and pay them off as quickly as possible (this sends a message to lenders or bank that you’ve got a credit history plus you pay your debts almost immediately. Since you can do this consistently without hiccups, then it means you’d do the same when given a bulk car loan)