People With Bad Credit
Not all of us have perfect credit, and that is fine. Instead of worrying about your current credit situation and past mistakes, the prudent move is to determine what you can do today in order to improve your credit score.
Three Little Numbers, But So Much Power
Your credit ranking is determined by a variety of different factors. It is the Bacon or Fico score, which is a three number score, that serves to tell everyone from lenders and landlords to employers as to whether or not you are a credit risk.
The Lower the Score the Higher the Risk
The lower your score is, the higher the perceived risk. This, of course, has numerous implications, for example, your credit score definitely impacts bad credit car loan results in Canada. A poor credit score isn’t going to help you get the best rates possible when you go for an auto loan, but it isn’t the end of the road either. There are many Canadian auto loans companies that are eager to get your business!
How Do You Avoid a Bad Credit Car Loan to Begin With?
Everyone wants to know how he or she can avoid a bad credit car loan to begin with, as a bad credit means a higher interest rate. In general, this translates to a higher bill every month. By paying your bills on time and keeping your ratio of income to debt modest or low, you can do wonders to help that all important credit score!
It needs to be pointed out that paying your bills on time and having a low ratio of income to debt are not the only factors that determine your credit score. Making timely payments is important, of course, but having too many credit accounts can also negatively impact your score. This is why it is important to close down accounts that you rarely or never use, such as a forgotten department store credit card. Another variable that can negatively impact your score is applying for too many loans in a short period of time. This activity makes potential lenders nervous.
Bad Credit Auto Financing
The good news is that auto loans for people with bad credit in Canada do exist. If you believe that you can’t find auto financing due to bankruptcy or other problems, then it is important to realize that there are lenders who work with borrowers that have bad credit histories. We have carefully assembled a network of lenders that specialize in bad credit auto financing. Through this process, Auto Loan Experts has eliminated the hassle and the time usually associated with applying for a car loan.
You Too Can Find a Car Loan for Bad Credit
There are three big factors that can affect your credit ranking:
1) Late payments
Late payments of any kind are a killer and should be avoided if you want to keep a good credit score.
2) High debt to income ratio
Lenders get nervous if they see that you are carrying a lot of debt in contrast to your income.
3) Past bankruptcy
Any combination of these three factors can serve to make lenders nervous. These factors are compiled and translated into a credit score that is used by lenders to determine what kind of risk a prospective borrower may be.