Credit Learning Centre
Special credit auto loans is all about how to get a car loan for a vehicle with special credit. People that happen to have a special credit profile or other serious credit concerns can get the answer to their problem by getting themselves a special credit auto loan. The advantage of this type of loan is that they will allow the borrower to repair their credit history in the process. A special credit auto loan is generally used to get you a used vehicle. Since a special credit auto loan is a short-term loan, they help the borrower pay them back easily which in turn helps to re-establish a good credit rating.
The Canadian car loan industry is looking for your business. You just need to find the right lender for your specific needs. To simplify your search you can use the services found Toronto Car Finance. We are experts in obtaining all types of auto loans and want to see all of our applicants with the car of their dreams. We can give your application the attention it requires, and we will recognize your improved circumstances.
Auto loans are often approved in less than 24 hours. Apply now and you could be well on you way to driving the car you want tomorrow.
What is credit?
Credit is the term used to describe a transaction in which a person receives merchandise, money or services for little or no money up front, but promises to pay an agreed upon amount of money, in an agreed upon amount of time in the future. Usually, the person or company that gives credit to a person charges a fee for providing the service.
Without credit, you would need a full cash payment to buy an $800 refrigerator, a $25,000 car, or even a $150,000 house!
There are a few facts that you must also understand:
FACT # 1
You cannot erase your negative credit history, no matter what people say or do this will not change. Only time can erase that history and it takes about 6 years for it to drop off your credit score. We will help you start a new credit history and show potential creditors you have started a new page.
FACT # 2
You need to review your score and correct mistakes. Your credit score is only as good as what shows up in your credit report. Review your reports from all credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late -- can take 30 days to three months, sometimes longer.
FACT # 3
You need to develop an action plan to improve your credit. The problems that contribute to your negative credit score should dictate how you decide to boost your credit score. We work with you to develop a checklist of things you can do that would help your credit situation improve. This is where our 3 year action plan comes into play.
FACT # 4
This is probably the most important of them all. You need to establish new credit. But how if I got bad credit? Believe it or not there are companies out there who will lend money to people with derogatory credit. We work with them. This is not forever; usually after a year of good payment history we can then transfer your loan to a regular bank.
What if I have really bad credit?
Past credit performance is not important with us, rather, we focus on how you will fulfill your current and future obligations. When traditional lenders decline your application, talk to us. We can put you "back on the road" to good credit
Do I have to pay a fee to do an application?
No! There are no fees to pay. The lenders pay us not you.
I have been turned down before.
We will walk you through the process so we can get an approval for you.
How much do I qualify for?
Once you send in your credit application we can determine what amount you can qualify for.
How much of a down payment will I need?
That depends on what you would like and the lender requests. Often times we can get a zero down approval.
What Kinds Of Cars Are Available?
Work Out Your Car Loan First
Keeping the end in mind, your present situation may dictate the amount that a lender will loan you. Determining what this amount is should the first step in the process of choosing your car. Car Finance Centre carries hundreds of pre-owned, used and new cars and automobiles in a variety of price ranges.
Establishing your loan amount means that we can get down to the business of choosing the best automobile for you and your budget.
The last step in the process is finding the vehicle for you. We will review your vehicle needs with you and get to work on finding it. For more details on our credit rebuilding process, see our proven action plan at work.
Do you take trade ins?
We love trade ins! Tell us about your current vehicle and we will make you an offer!
What type of vehicle can I purchase?
That depends on what amount the financial institution approves you for.
What will my interest rate be?
Our rates range from 0 to 29.5 percent. Rates will depend on your credit history, vehicle year and kilometers.
Can I put Zero Down?
Yes, depending on the type of approval you get.
Who Is a Sub-Prime Borrower?
A Sub-Prime borrower is someone with bad credit. In many cases, traditional lenders reject sub prime borrowers. This is due to low credit ratings and/or factors suggesting they may default on loans.
Who Is a Sub-Prime Lender?
A Sub-Prime lender is a lender offering loans at a rate above prime to those who do not qualify for prime loan rates. These types of loans have a higher interest than the prime rate offered on traditional loans
Is a Sub-Prime Loan Right For Me?
Auto loans for people with bad credit allow you to buy a car, even with a bankruptcy or foreclosure in your record. Sub prime lending allows you to secure financing, usually with reasonable rates and terms, and you always have the option of refinancing in the future as your credit history improves.
A common misperception is that if you have bad credit, you will pay several points higher for an auto loan. Not true. Most sub prime lenders will only charge a couple of points higher. Their fees will also be comparable to conventional loans.
To find these low rates, you need to do your research. You have hundreds of lenders to choose from, so pick the best one. Financing companies will give you quotes at your request so you can make comparisons. Online sites can really speed up this process.
Why Do I Need A Credit Card?
Getting A Credit Card With Bad Credit
Having bad credit may lead some lenders to consider you a lending risk; leaving some lenders questioning your ability to repay the loan.
There are those that will issue credit cards to people with bad credit, but expect to pay higher interest rates and hefty penalties for delinquent payments.
Getting A Car with Bad Credit
Getting a car with bad credit – from a lenders point of view – is a much safer bet than just getting a credit card. The difference is that the car is used as collateral; thereby securing the loan and minimizing the risk to the lender.
Getting A Car and Credit Card with Bad Credit
Drive and Rebuild Your Credit simultaneously!
CarFinance Centre can help you to do both: using your car as collateral, we will issue you a ‘secured credit card’ – putting you back on the rood to re-establishing good credit. This is one of the first steps to helping your future credit look well rounded.
As part of this process, we will advise and recommend you do the following:
- Start with smaller, more manageable purchases
- Pay your minimum payments on time
- Pay your balance each month
Within a matter of months – and by following the terms of the loan – you’ll be able to qualify for a lower interest rate and higher credit limit.
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