Credit history determines interest rates and if you can get a loan at all, it provides insight about your financial health and financial responsibility. Your credit history, rating, and score provide insight on how likely you are to pay a lender on time. Lenders use categories based on credit history to rate applicants as high, medium or low risk to repay.
Credit Rating – an evaluation of a person’s credit history in Canada. It is based on variables such as credit card payment history, monthly mortgage payments and anything with a payment schedule, such as utilities like electricity, water and heating.
Credit Score - a three digit number that represents credit rating – it determines if you are low, medium, or high risk. It is calculated on an algorithm that compares your credit information to credit information of other people. It is a prediction of how likely you are to pay your lenders on time.
Medium or high risk credit scores are often refused by regular banks.
Good credit – banks are are viable lenders. “Banks have stepped up to provide car-loan business as the credit arms of some major car makers have stopped leasing vehicles and been forced to charge more for loans,” as Automotive Consultant Dennis DesRosiers tells it.
Bad credit, bankruptcy, or no credit – local lending institutions and private lenders are suitable options. They offer car loans focused on the ability to repay. At United Auto Credit we offer car loan options for people with any credit rating across Ontario.
Pay attention to your credit score if you want good interest rates on a car loan. Make at least the minimum payment on your bills to show financial responsibility, this will affect your credit positively.
Make regular payments for just 6 months and repair your credit - then get a new loan with a better interest rate. The new loan can be used to pay-off the previous loan with the higher interest rate. You save the money you would have paid in high interest rates.
If you purchase a car on credit and fail to make monthly payments then the car can be repossessed. Also, it will make it difficult to get a loan in the future, you will be high risk for lenders.
United Auto Credit, we can help you get a car loan, Ontario bad credit car loan specialists with over 20 years experience.