Are you planning to buy a car with a loan? Wondering if you will get approved with poor or no credit?
In Canada, taking out an auto loan is usually one of the easiest ways to quickly finance a vehicle that you cannot ordinarily afford. While in some cases, the borrowers financial situation is that of a poor credit, it is also possible to get approved without any credit at all.
When getting approved for a car loan in Alberta, it’s still important to deal with a few fundamental issues before you sign on the dotted lines.
With this thought in mind, let’s quickly consider some helpful tips that can help you get the best loans in Alberta for bad credit situations.
Go for what you can afford
Most people often make the mistake of choosing a vehicle that is beyond their budget. As a result, they end up spending all of their income to pay back the loan for many years, and are often cheated out of the real value of the vehicle due to the exorbitant interest rate charges that come with some car car loans calgary alberta.
Auto loan interest rates are usually higher when borrowers have a poor credit history which inherently creates more risk for lenders. Imagine a situation where you want to borrow without any credit at all. Lenders have no record of any pre-established credit or your payment history, so the interest rate is likely going to be higher. Wanting to buy an expensive vehicle under these circumstances will most likely be very hard to do, so to make life easier make sure you go for a vehicle that you can afford.
Using our alberta loan calculator, you can determine how much you will be able to spend on your loan each month based on your income, purchase price and annual interest rates. You can try our Loan Calculator here: https://www.freeautocredit.ca/calculator
Ask for Confirmation
When you’ve finally struck a reasonable price after negotiation, make sure you ask for a written confirmation. This will ensure that no additional fees are added other than the one that was agreed upon during negotiation.
Perhaps a written document is a good way to seal your agreement with the lender when taking out any loan in Alberta for bad credit. These days it’s difficult to trust the validity of any transaction if it’s not properly documented.
So don’t leave any stone unturned. Ask for a written confirmation outlining the terms and conditions of the loan before you decide to proceed!
Put something down first
One of the best ways to reduce the interest charges and the monthly payment amount while looking for car loans in Calgary Alberta is to either make a down payment or trade in a vehicle. Making an upfront payment not only reduces the total cost of your loan, it also shortens the loan term and attracts a lower interest rate.
A large down payment leaves you with a small loan while a small down payment leaves you with a larger loan. Putting down something, no matter how little, is far better than no upfront payment and will also go a long way in getting your loan application approved.
Loans that are financed without any down payment tend to come with higher interest rates and monthly payments and longer payout terms.
Shop around for the best deal
Make sure to shop around for the best dealerships in your area and compare quotes to get the best auto loan. When shopping for a used vehicle this is especially true, as values for some vehicles that are the exact same make and year can differ substantially.
By working with a reputable dealer like Free Auto Credit, you can be rest assured of getting a great car financing package that is specifically tailored to your needs. We have been able to help many Canadians like you become proud owners of new vehicles that fit both their situation and their budget.
Please use our Alberta loan calculator to know the cost of your car financing to see if it’s affordable and within the limits of your credit. Visit us today at Free Auto Credit and save your money !