Bad credit car loans Victoria; buying a car in Victoria traditionally takes a long time, it can take even longer if you have bad credit.
And while you can do a lot of research online these days, you usually have to leave your home at some point to test drive the car, sign the paperwork, and pick up the vehicle to take home.
Say bye to that, Canada Drives has made online car shopping the best way to buy and finance a car. Therefore, continue reading this guide on bad credit car loans Victoria to see the online solution for Bad Credit Car Loans in Victoria.
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Bad Credit Car Loans Victoria: The Online Solution for Bad Credit Car Loans in Victoria
Canada Drives is an award-winning online retailer with over a decade of experience putting happy drivers behind the wheel of the cars of their dreams.
We believe that buying a car should be a great experience and that approving loans should be simple, fast and easy. And because we believe that everyone deserves a second chance, they also work with bad credit situations. Our large network of credit partners means we can help large and non-large clients find great vehicles with affordable financing.
Why work with them?
If you’re looking for bad credit car loans to drive through the streets of Victoria, Canada Drives can help you find a great vehicle and secure approved financing with ease.
Any credit welcome: No matter what credit situation you’re faced with, they help customers of all backgrounds find a vehicle they love.
Simple process 100% online: Buy hundreds of certified vehicles without leaving your home! Do everything by phone, email or even SMS! They provide 24/7 live customer support.
Flexible financing options: Canada drives makes financing stress-free and tailored to your specific situation. Pay for your vehicle in cash, finance the purchase or combine both methods.
No Dealer Fees – Because they don’t have any sales reps or brick-and-mortar stores, it means less overhead and we pass those savings on to you.
Tried and trusted: Canada Drives was named one of Canada’s Best Managed Companies and a Deloitte Technology Fast 50 honoree, but even more important than those awards are near-perfect customer scores on Trustpilot review sites.
Return – 7-day money-back guarantee means you can change your mind and get a full refund after a week of riding. We’ll even pick up the car!
Is that how it works?
Looking for bad credit car loans Victoria you can get pre-approved if you have bad credit, we recommend getting pre-approved as the first step. By approving your car loan now, you know exactly how much car financing you can get and save a lot of time in finding the right vehicle. This pre-approval will not harm your creditworthiness and there is no obligation to do anything once you have received the terms of your approval. Get pre-approved now!
Start your search – browse their inventory of hundreds of vehicles and choose your perfect car. You can sort by year, make, model, lifestyle, whatever you decide to narrow down your options with ease.
Choose your payment method: Complete the entire purchase online. You can pay in cash, by credit card or by bank transfer. Or you can finance the car of your choice with your own bank or with one of our credit partners.
Receive it: Once you’ve chosen your car, you can choose a delivery date and time to suit your schedule and we’ll ship it straight to your door.
Better than a test drive: Once you get the keys to your car, you have seven days to drive it on all your usual routes to make sure it’s the right fit. If for any reason you change your mind, you can exchange the car for something else or get your money back.
How to get bad credit car loans?
If you have a score of 660 or less, you are likely facing a high APR for auto loans. But don’t despair! There are ways to reduce this. Setting your budget early can help you get approval for a car loan and set you up for success.
1. Budget for a higher interest rate
Experts recommend keeping your total transportation costs under 10% of your budget. If you have a low credit score, you will pay more interest, so you should look for a cheaper car and/or make high down payment.
Experian reports that successful auto loan applicants with insufficient credit scores funded lower average amounts, about $29,000 to $35,000, compared with those with higher credit scores who had larger loans, about $34,000 to $39,000.
For example, if you can afford a $450 payment over 72 months, you’ll need to fund it, based on the average auto loan APR for your credit score. Please note that credit limits differ depending on the data source.
2. Have a co-signer
A co-signer of a car loan can help enormously. Even if the other person doesn’t have the best credit, lenders generally see two people taking responsibility for the loan as a positive sign that they will receive payments each month. A co-signer can greatly improve your chances of getting approved and lower the APR on your car loan.
The flip side of this is that both people with a car loan are fully responsible for paying back the loan. So if one person doesn’t make the payments, the other person has to step in. Otherwise, both applicants’ credit scores will drop.
3. Request pre-approval
Each lender may look at their credit history in slightly different ways and offer you a different APR loan. Therefore, it is best to shop around for whatever type of loan you want. Do not rely on a dealer to do this for you. As a middleman, car dealers can increase your APR by up to two percentage points. Check out the best bad credit auto loans instead, and most importantly, consider applying to your local credit union.
Applying to multiple lenders won’t hurt your credit: Major credit bureaus give consumers a two-week period to compare rates. If you make all loan applications within 14 days, your credit will not suffer any more damage than if you applied for a loan.
Other factors that can help you qualify for a car loan with Bad Credit
We’ve already gone through a number of factors: buying a cheaper car, having a large down payment, getting pre-approved, and having a co-signer. Here are other things you could provide to a lender to demonstrate that you are financially stable and able to repay a car loan.
· Proof of Income (POI)
Pay slips are often an easy way to prove your income. If your employer(s) do not provide these or if you have income from other sources, such as child support, alimony or pension, you may be able to provide three to six months’ worth of bank statements.
· Proof of Residency (POR)
Documents showing your name and address can satisfactorily prove where you live: utility bills, cell phone bills, mortgage, or lease.
· References
By providing references, you give the lender a list of people they can contact if you stop paying. This can be seen as useful if you move often.
Most importantly, talk to the lender. Talk to a customer service representative and ask what you can do to get approval or get a better interest rate. They may be able to give you a straight answer like saying you need $300 more in your down payment.
How to build up your car credit
It’s important to check your credit score before you start shopping so you know your baseline. The best way to improve your credit in preparation for a car loan is to pay off your current car loan on time each month. But here are other ways to improve your credit score in addition to or instead of if you don’t currently have a car loan:
- Reduce your credit card debt
- Pay all bills on time
- Keep your credit accounts open
- Do not apply for other types of credit for six months before applying for a car loan
There are two main credit scoring models that can provide your credit score:
FICO score
Developed by the Fair Isaac Corporation, your FICO score is by far the most widely used credit scoring method. It weighs heavily on your payment history and how much debt you have compared to your credit limits. It takes about six months of credit history to develop a FICO score.
VantageScore
The three major credit bureaus (Equifax, Experian and TransUnion) have developed the VantageScore with the aim of more accurately reflecting consumer behaviour and risk. Your total credit utilization and credit mix are the most important factors in your VantageScore. It only takes about a month of credit history to develop this credit score. Here is a specific guide to getting a car loan without credit.
FAQ – Bad Credit Car Loans Victoria
Can I get a car with a credit score of 500?
You can get a bad credit car loan with a credit score of 500. Having a high down payment, getting a good deal on the car, and having a co-signer can increase your chances of getting approved.
Does a car loan improve my credit score?
Yes, a car loan improves your credit score if you pay on time and in full until you trade in, sell or pay off the car.
What is a good credit score to buy a car?
Experian reports that nearly 56% of car loans are made to people with a credit score of 661 or higher.
What credit scores do you need to buy a car without escrow?
People with excellent credit scores (661+) may not need a car loan co-signer.
What is good credit scoring for a car loan?
The higher your credit score, the better the rate you will get on a loan. A credit score of more than 660 generally allows you to qualify for a car loan without any problems. A credit score of 760 or higher generally qualifies you for special automaker financing that can offer low APR loans and discounts.
Conclusion – Bad Credit Car Loans Victoria
Bad credit car loans Victoria; buying a car in Victoria traditionally takes a long time, it can take even longer if you have bad credit.
Say bye to that, Canada Drives has made online car shopping the best way to buy and finance a car. Therefore, read this guide on bad credit car loans Victoria to see the online solution for Bad Credit Car Loans in Victoria.