Your Credit and Car Loans, 101

When it comes to getting a car loan in Regina, credit and car loans are intertwined in a way that makes them somewhat codependent. In order to get a great car loan, you’ll need to have great credit. However, in order to have great credit, it’s wise to have a history of car loans that you have successfully managed or repaid.

Here are a few ways that we want our customers to be aware of when it comes to car financing in Regina and credit working together:

How credit is built

Credit is determined by five different factors: payment history, types of credit, amounts owed, new credit, and length of credit history. These five factors all account for varying percentages of a credit score. However, payment history accounts for 35 percent of a credit score – the largest percentage. Payment history means the track record that an individual has developed based on loans that he or she has taken out and then repaid.

In order to develop a track record of repaying loans, it is important to actually take a loan out in the first place. Many people begin to build their credit by taking out small loans, such as a car loan, and then committing to repaying it. When repaying the loan, customers are able to develop positive credit histories.

Starting from zero

It is true for many people that they have no credit because they have a history of paying for cash or simply have not yet needed to take out a loan. However, it is important to develop a credit history so that people can qualify for low interest rates and high loan amounts. For example, if you ever wan to get a home mortgage loan, you’ll need to have good credit to get a good rate. Some people start by opening small accounts, such as credit card accounts – even if they don’t use those credit cards. Taking out a small car loan is also an excellent way to begin to build a credit history that will help you to get a lower interest rate down the road.

Stay positive

It’s important to keep a positive credit score by making wise financial decisions whenever possible. This means that you’ll need to repay your loans if you take them out. You should minimize debt in order to improve your credit score if it is bad. There are other tricks and tips that we are happy to share with you that will help you to get a better credit score and get a better loan. Contact us today for details or more information on getting a bad credit car loan in Regina.

Get Your Car Ready for Spring by Listening Well

As we head into warm spring months, chances are good that you are already starting to think about road trips and weekend vacations. In order to safely take long drives for extended periods of time, it’s important to be sure that your car is in excellent condition and that you don’t have any engine parts that are threatening to come loose at any moment.

Listening to your car and reveal a lot about what’s going on under the hood that you may not be able to see. Plus, it will be easier to listen to your car in the spring because it’s a lot nicer to drive with the windows down! Even if you are not a car maintenance guru, there are some noises that should alert you to possible damage or danger. Here are a few noises that you may hear from your car and more information about what they may mean:

Squeal with Varying Pitches

The most common cause of a squeal coming from your engine – especially a squeal with varying pitches – is a belt. When you hear a squeal, chances are good that the belt is about to fail because it is loose. It’s important to take you car in for an inspection right away whenever you hear this kind of squeal.

Clicking

Many times, you will hear a faint clicking noise coming from your engine after you turn off your engine. Don’t worry – a faint clicking noise is a normal noise that is caused by your manifold dropping in temperature. You will not need to get your engine checked out if you hear this noise.

Howling

A howl that sounds like a cat when you turn your steering wheel (especially during parking) is a normal noise for many people. However, it’s not a safe noise. You should bring your car in to see if you need to add more power steering fluid to your car.

Clicking While Turning

If you hear a clicking noise while turning your wheel, then bring your car in for an inspection immediately. Chances are good that the CV joint (part of your axel) is wearing out. You don’t want to have an axel wear out during a weekend trip!

Whooshing Sound When Turning on the Car

If you hear a loud whooshing noise when you turn on your used car, then you’re probably okay. There is a large fan located behind your engine radiator that moves a lot of air quickly, causing the whooshing noise.

Contact the Loan Doctor in Regina for more information about how to listen to your car to get it ready for safe springtime driving.  We offer used cars and used trucks, car loans and bad credit car loans in Saskatchewan