How to rebuild your credit?
Many people have been able to finance a car with bad credit. Getting a vehicle loan is a good way to rebuild your credit and improve your credit score. Despite the potential pitfalls involved with bad credit vehicle loans, these loans, if paid on time will help in rebuilding credit after bankruptcy and will do much to improve your credit and make future borrowing easier. Bad credit vehicle loans generally involve less financial risk for both the lender and borrower than a home mortgage, yet they still give the borrower an opportunity to make installment payments in order to prove their ability to pay over time
Finance a Car with Bad Credit:
When you finance a car with bad credit in you must be careful to avoid getting into a situation that actually causes your rating to fall even further. While many have been able to claim “a vehicle loan improved my credit score” a bad credit vehicle loan can also cause damage if you are not careful to avoid the mistakes that got you in to trouble in the first place. A bad credit vehicle loan often requires higher down payments.
Lenders who focus on the bad credit vehicle loans also tend to offer loans with higher interest rates. Higher interest rates equate to higher monthly payments. Borrowers who sign up for these more expensive loans must be sure that they can afford the payments. Default on such a loan causes further credit damage. Rebuilding credit after bankruptcy also requires a change in lifestyle to avoid what placed you in bankruptcy in the first place.
If you have any questions, please contact our In-House Lease Manager, Shawn Proulx at (403) 527 1115.