Finding Car Loans With Bad Credit In Ottawa

A key factor that the bad credit auto loan lenders will look at is your credit history – especially if you need a car loan with bad credit. For many people, a poor credit history means they think there is a slim chance of getting financed. Most of the time, the only chance to get a car will be at a local buy here pay here lot. Many bad credit buyers that get a car loan find rates are much higher than normal and their vehicle selection is limited. If you think these are the only choices available if you need a car loan and have bad credit, you’d be wrong. For a lot of customers whoe’s credit is not perfect, bad credit auto loans solve a few problems:

1. Provide transportation to and from work
2. Reestablish your credit history
3. Raise their credit scores

The three things the best lenders will scrutinize is credit history, down payment and the credit application. All three of these pieces are important in either approving or denying a request for financing. These constitute “the three Cs” of lending: collateral, character and capacity.

Collateral

The type of vehicle being financed. The amount of the loan on the vehicle (LTV) should be less than 120% of Black Book. Lenders look at the length of the loan to see it fits your credit profile.

Character

Lenders often times separate bad credit into two profiles: situational and habitual credit.

• Situational credit involves a person makes timely payments, but, due to an unexpected event such as a divorce, illness or loss of job, finds they are in need of a car loan with a bankruptcy and bad credit.
• Habitual credit is repetitive problem credit that happens time and time again.

Even though both types of credit are considered bad, people with habitual credit may or may not get approved. If a person with habitual bad credit is approved, they might find themselves paying the highest interest rates.

Capacity

This is the amount at which you are actually able to afford based on your current monthly income vs. your current out going expenses. If you can not afford to pay for the fuel because the car payment taps your account, then you do not have the capacity to own a vehicle.

Auto Financing options affected by Your Job and Credit History

Often times low income and spotty job history have a negative impact on their credit decision, while a higher average income and a great job history will help overcome negative credit history. Without knowing this information, how can some promise you the opportunity to get a bad credit financing for a car? The truth is, they can’t. Look for the fine print at the bottom of the page. Remember: an accepted auto finance application is not an approved finance application.

If you are truly interested in repairing your credit, Auto Mall Loans can help you get your next car loan with bad credit. We have helped thousands of applicants to buy dependable used car with bad credit. So if are looking to rebuild your auto credit, avoid buy here pay here dealers that only advertise weekly payment car loans and apply online automallloans.com and we can get you back “on the road” to better credit.