There are certain situations that can adversely affect your credit score and impact your ability to get a new loan for a car or a house. Missing payments, having a lot of debt, repossessions, and going into collections for your debt are some of the major factors that can decrease your credit score. Have you gone to collections? You can still get help with your car financing in Ottawa. There are loan companies that specialize in granting loans to people with poor credit scores or even no credit score.
One of the ways to improve your credit score is to get a car financed and then make your monthly payments on time every month until your car is paid off. Paying your bills on time comprises about 30-35% of a person’s credit score. This is a great way to improve your credit history and show that you have a proven track record of paying your bills on time. Improving your credit score in this way may help you get a better interest rate and a lower monthly payment on loans that you apply for in the future.
If you have a collection impacting your credit score, many banks or car dealerships will not give you auto financing. That’s where loan companies that deal with low or no credit scores come in. They will often be able to work with you and make sure you are getting the right kind of loan that works for you.
In conclusion, even with poor credit resulting from a collection or missed monthly payments, you may still be able to get a car loan in Peterborough. Contact a well-reviewed loan company that specializes in granting loans to people with poor or no credit. This can be the first step to improving your credit score and eventually paying off your new car. Think of getting a car loan as the first step to rehabilitating your credit score. Remember, even if you have gone to collections, we can still help with your car loan in Ottawa.