Understand your credit scoreA credit score is a three-digit number based on the information in your credit report. Credit bureaus don’t release the exact math behind this number, but what we do know is that your credit score increases when you can demonstrate that you use credit responsibly (paying bills on time) and that your credit score decreases when you show that you have difficulty managing credit (a bill is paid late or goes to collections). Your credit score, also known as a FICO score, is used to tell a lender the likelihood that you’ll be able to pay back the money they’re lending. It’s up to each lender to decide the lowest credit score they feel comfortable with and will likely use this score to set an interest rate and a credit limit. The higher the score, the lower the interest rate, because, generally speaking, the risk for the lender is lower. In Canada, credit scores range from 300 to 900, with the best being 900. Credit scores change every time your credit report is updated.
Anatomy of a Credit ScoreAs we’ve mentioned, the exact math equation that creates a credit score is unknown, but we do know that it is based on the information in your credit report, which is then compared to millions of other people’s information. The median FICO score is 720 out of a possible 900. The riskiest customers have scores below 600. Higher scores are better and translate to lower interest rates.
Ways to improve your credit score:Consolidating debt, like using your line of credit to pay off credit cards is one way to improve your credit score if you have debt in multiple areas. Another way to improve your score is by building up your responsible use of credit. In fact, 78% of borrowers see their FICO score increase 3 months after getting a loan. On average, this increase is 23 points!
Applying for Auto Loans is second only to purchasing a home. Buying a car is the biggest and most important purchase we make. There is more involved in buying a car than most first-time buyers will suspect. Beyond the make and model of the car, there is loan financing that must be taken into consideration. Getting a loan for a vehicle is much easier today than is used to be, although there are many pitfalls that you should take into consideration beforehand.
How Big of a Loan Can You Afford?
Use our Loan Calculator to see how big of a loan you can afford. Our loan calculator is an easy way to determine what size of monthly payments you can make and over how longer of a period you will be paying them. At this stage, it is important to already have in mind a monthly budget.
Used Auto Loan, in partnership with multiple lending companies, can offer nearly everyone a loan. To determine if you qualify, use our online application form to see if you qualify. The form takes several minutes to complete, and in 48 hours or less we will contact you regarding your status. In the meantime, you can sit back and relax, knowing that there is a team of people working hard to qualify you for a loan.
While most car dealerships have difficulty offering auto loans, we are able to successfully offer loans to 95% of the people who apply. We can do this because, unlike most dealerships, we coordinate with multiple lenders to give you the best loan possible. If you meet any of the following criteria, you might still qualify for a loan:
- Bad Credit
- No Credit
- Fixed Income
0% car financing, what is it?This is where you’ll see the dealership offer 0% financing or up to a $10,000 cash back offer. When you crunch the numbers, it turns out that the cash back offer normally saves you money. As of today, Ford.ca offers a 0% financing deal or about $7,000 in price adjustments.
0% Financing for Used CarsBecause you are not paying interest, the dealerships will give you a shorter repayment period of somewhere between 36 and 48 months. This means that you’ll have much higher monthly payments than you otherwise would with a 60 month loan or longer. If you bought a pre-owned vehicle with about 4.95% loan, you would actually end up paying less for your vehicle than with 0% financing plan.
Auto Financing London OntarioThe most important thing to remember is that, in the end, it comes down to what you can afford to pay per month. Most people will not be able to afford a 0% financing deal and so must opt for a loan. This isn’t a bad thing and shouldn’t be discouraged. Regardless, 0% financing is a fading trend and may not be around in five more years. In the end, your best option is to first Apply for a Loan using our Online Car Loan Application to get pre-approved quickly. Now you know in advance exactly how much you can afford to pay and what type of car you want to purchase or at least qualify for.
- If you have had credit problems or have never had credit, call us now at (866) 969 1999 or Apply Online
- If you have been or are involved in bankruptcy and need financing to purchase a vehicle, call us now at (866) 969 1999 or Apply Online.
- If you have been rejected by any major banks, Chrysler Credit, General Motors Credit or any other financial institution, call us at (866) 969 1999 or Apply Online.
- If you need a lease paid out which is through the manufacturers own financing branch and can’t get them to finance it, call us now at (866) 969 1999 or Apply Online.