Buying a car isn’t always easy for some people. If you have bad credit, it may be especially hard to land a car loan that you can afford. One of the best ways to get a low rate car loan is to have a solid credit history. However, if you have bad credit or no credit, car loans are still possible, but they may be even more affordable if you are able to re-establish your credit.
In order to re-establish your credit, there are some simple things that you can start doing today to make affording a car easier a few months from now. Here’s how:
Pay Off Your Credit Card
When a lender goes to look at your credit history, the lender will be able to see a snapshot of your credit situation that is about a month old. There are three credit bureaus that hold your credit information. In order to get a loan rate that is as low as possible, it is important to pay off your credit cards (or pay them down as low as possible) so that when a lender accesses your credit history from a credit bureau, they will be able to see that you have a low amount of money that you owe on a credit card.
Dispute Credit Report Incidents
Many people suffer from bad credit because of a mistake in their credit report, such as a missed payment claim or even stolen identity issue. In order to decrease your risk that you will have a higher loan rate, it is important to dispute any incidents on your report that may hurt your credit score. Sometimes, you can even request to have incidents removed that you are responsible for, such as a late payment.
In order to dispute credit report incidents, you’ll need to contact each of the credit bureaus in writing. Re-establishing your credit after a negative incident can take time, so start today.
Develop a Loan History
When a lender looks at your credit report, it may help you if the lender is able to see that you have experience taking out loans and paying them back on time. Therefore, start small. By taking out a loan even on a credit card, your lender will be able to see that you have a track record of being responsible about paying back your loans.
Contact us at 705-474-6444, or visit us on-line at https://www.driveitnow.ca/ for more information about how we can help you get the best car loan rates possible for your credit history – or for advice about how to re-establish your credit before you buy.