With incomes remaining steady and prices going up, it is not uncommon for average Canadians opting for credit to fill the gap. Almost 71% of families in the country had some form of debt in 2012. And not all of them manage to keep a good credit score. In fact, a bad credit score isn’t as uncommon as it used to be; rather, it’s the norm. A bad credit score isn’t ideal, but it’s not the end of the world either. You can get good deals, provided you do not commit the following two mistakes that people with bad credit often commit:
Not knowing their credit score:
A bad credit score can cost you thousands of dollars by way of high-interest rates. The most common mistake that people make when looking for car loans with bad credit is to not know their credit score. What you assume to be bad credit may not necessarily be bad for the bank. They may not be happy to admit this, but banks look at several factors besides your credit score when deciding to finance your car loan. You may be tricked into buying a car that the dealer has a hard time getting rid off because (according to the dealer), that’s the only vehicle you qualify for. Besides jacking up the interest rates, the dealer could stretch your loan term to the maximum, or add in accessories that you don’t really need.
Being casual about the process:
Window shopping isn’t discouraged per se, but if you want to a good bargain, you will have to prove to the dealer that you’re serious about buying the car. To get approved for a car loan, you will need driver’s license, a pre-authorised payment form (for the account that the payments will come from), recent bank statements, etc. Sometimes you may be required to furnish reference letters and employment letter.
Looking for bad credit car loans in Nova Scotia? Call us! We’ll help you…