Whatever your credit score situation is, you still probably need a car. The modern world nearly requires it. That said, it can be really hard to find an affordable car when your credit score is poor. Likely, the terms of the loan and the rates will not be in your favor. If you are looking for bad credit auto loans in Nova Scotia, here are 5 tips to help:
1. Choose a short term auto loan:
Short term loans have a lower interest rates. This will let you pay your loan faster and improve your credit score.
2. Go for options that you can afford:
The down payment is just half the story. You should be able to afford the monthly payments and manage to save for the future. Don’t spend on a higher model just because it appears you can afford it at the moment. Saving will put you in a better position in the future, at which point you can really spend.
3. Don’t be tempted by lenders offering extras:
Some lenders offer VIN etching, paint protection, and other trimmings. You don’t really need these things, but lenders will try to talk you into them, because that’s what they’re trained to do. If you have bad credit, go for the core purchase and that’s it.
4. Know your credit score:
Don’t take the lender’s word as final. Get your credit score evaluated and find out if there are any discrepancies that ought to be cleared up. Knowing your true credit score will help you negotiate a good deal.
5. Prove that you aren’t a high-risk creditor:
Lenders look at how much you can afford to repay as much as much as they dot your credit rating. When negotiating a deal, bring your recent utility bills, personal references, as well as any other proof that can show you are able to pay for the car.