Bad credit no longer has to be a reason why you can’t buy a car in Newfoundland and Labrador Canada. Even if you have a very low credit score, it’s not going to stop you from buying a new or used car. You may not have the cash to buy a car outright, and that’s okay. There are financing opportunities for you to explore with various loan companies and car dealerships.
In the past, you may have been denied a loan with bad credit. The good news is that many Canadians are in the same situation as you. Lenders have had to deal with bad credit if they want to do any kind of business. This works to your advantage because you can get the loan you need without being told to wait several years until your credit improves.
With more lenders willing to give you a loan, you can go out and look at the car, truck or SUV that you’re interested in without worrying about whether you get approved for a loan or not. Whether you buy new or used is up to you. The important thing is that you can make the monthly payment. As long as you can cover that, it’s all that really matters.
Making the monthly payment is what the lenders are looking at. If you have a good job and have been steadily employed, there’s no reason for bad credit to stand in your way. Past mistakes should be left in the past where they belong. If they seem to be constantly haunting you, you’re looking at the wrong lenders for a loan.
Most lenders and auto dealerships are looking more at your employer than your credit score these days. When you have bad credit, you may not even want a loan company to look at your credit score – and that may be possible. Many will conduct employer verification checks, however. They will confirm your pay and your employment with your employer. As long as this checks out, then you can be granted a loan.
Bad credit is something many suffer from. You can’t let it stop you from getting a car in Newfoundland and Labrador. With so many dealerships throughout this area of Canada, you can find a car without much trouble. What you pay for it and how much it costs you on a monthly basis, however, is a different story.
There are several factors that go into the cost of a car payment. This includes the total dollar amount of the loan, the APR and the loan terms. When you go car shopping, you need to know how much you can afford so you don’t look at cars that you really can’t afford. It will save you some heartache as well as time on the car lot.
Some lenders are going to check your credit to determine your risk level. The higher your risk level, the more it will affect the total loan that you can be approved for. It may alter your loan terms or your APR – or both.
For example, the loan terms may be 24 months, 84 months or somewhere in between. The longer the term, the easier it is to spread the amount of the loan up and maintain low payments. However, longer loan terms are also riskier for lenders. You may not be able to find a lender that will issue you an 84-month term in Newfoundland or Labrador based upon your credit score. Then again, you may find one but they will also charge a higher APR.
Often, you will be able to get a lower APR when you opt for a newer car and lower loan terms. Depending upon the cost of the car you want and what your budget is for monthly payments, this may or may not be an option you can look at. You want to avoid paying as much as possible in interest for the duration of the loan, but you also need affordable payments.
You will have to do some comparison shopping for the best car loan in the area. Some Newfoundland and Labrador lenders will give you low APRs others will give you higher loan terms. Apply to a few different lenders and dealerships to see what your offers are. An offer doesn’t mean you have to accept these terms – they are used simply to determine what you can qualify for.
Once you have a few offers in front of you, it will be easier to see which one is right for you. You can calculate what your monthly payment will be and what you would pay in interest over the course of the loan. Only then can you truly make an informed decision for your loan.
Bad credit isn’t the deal breaker that it used to be. Plenty of people throughout Canada have bad credit. They are all still buying cars. New or used, it doesn’t matter what car you buy as long as you can afford the payments and it’s a good deal.