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Bad Auto Credit Score? Tips On Getting Into The Car You Deserve

Think of all the days you’ve been stuck in the rain waiting for the bus with places to go and people to see. It’s the best way to travel fits your budget, but owning a reliable vehicle better suites your lifestyle. The only thing stopping you from getting into the driver’s seat is your bad credit and the fear your credit application being rejected.

The fact is, just because you have bad credit doesn’t mean you can’t own a vehicle. If you have a high credit rating, a lot of finance companies and lenders see you as a high-risk client and often won’t grant you an auto credit. However, there are certain steps you can take to improve your credit and have your credit application approved in no time.

It’s All In The Numbers

The best way to get approved for an auto credit is to first know what your personal credit score is. In Canada, you can request your credit score at TransUnion Canada, or have your car dealership retrieve it for you. If your score is above 600, it is likely you will be granted your credit application.  However, if it is below 600 your application will likely be rejected. There are a few things you can do to improve your score.

Play Catch-Up

If you have a bad credit rating you probably have either missed payments on important bills or have been avoiding creditors and payments all together. Lenders want to trust you’ll be responsible for making your auto credit payments on time, without having to be chased after. If you have multiple outstanding balances with different companies, now is the time to start paying off those bills. Not only will it improve your credit score over time, it will take a load off your shoulders by being debt free.

Call In for Backup

Once you’ve begun to repay overdue bills and creditors, your score becomes better, but your credit application still may not be approved.  Either you have a history of bad credit or like most students and young people, you’re in the process of growing your credit and don’t have a lot on record. Auto credit lenders will often ask for one or more co-signers who have an income of at least $1800 a month and are over the age of 21. Not only will this help you get approved, it often lowers the interest rate you will pay as well.

Once you’re aware of your credit score and the steps  needed to improve, you’re on your way to sitting in the front seat of a new car and a more financially stable life. Once you are approved for an auto credit, your credit score will improve over time as you make car payments. With nothing to lose, get started on your credit application today and get out of the rain and into your car.

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