When you have a low credit score, you may think it is nearly impossible for you to find and buy a car. You cannot be approved for a loan through a credit union or bank. Most dealerships also will not approve you for financing because of your bad credit history.
Rather than relegate yourself to taking public transportation or hiring a taxi to take you places, you can locate and purchase a vehicle by doing business with bad credit car dealerships. These dealerships specialize in working with people who have subpar credit ratings and help them rebuild their credit reports and increase their scores.
Getting a Loan
When you look for a car from bad credit car dealerships, you typically will be offered in-house financing rather than a loan through a bank or credit union. These dealerships are often referred to as Buy Here Pay Here businesses. As the name implies, you buy and pay for the car at the dealership rather than a mainstream lender like a bank.
Because of your low credit rating, you typically can expect to pay a higher interest rate. The rate that you pay can be twice or triple the amount of the going rate at banks or other car finance businesses.
Still, you get a loan that lets you buy a car that you need to get to work, school and other places. You also get a payment that is in line with how much you earn each month.
These dealerships accept payments in-house so you do not have to mail in a check or money order. Your loan may be set up on monthly payments that last for upwards of six years before you pay it off completely.
Bad credit dealerships can extend financing to you. You can get a car of your own to drive.
For more information, visit Canada Auto Experts.
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