Frequently Asked Car Loan Questions, Loan Doctor Calgary, Alberta

Frequently Asked Questions

What kind of vehicle will I qualify for? Can I pick the car I want?

The type of vehicle you’ll qualify for is based on a number of factors. Your current debt level, gross income and your current credit status all affect the rate, term and amount of loan you’ll be approved for.

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The year of the vehicle and mileage will affect your rate and terms as well. Don’t worry though, Your Loan Doctor Specialist will help you select the car or truck you want and ensure you the best approval possible!

What is a beacon score, how is it calculated, and how important is it?

A beacon score is a three digit number between 300 and 900 that quickly summarizes a customer’s credit situation for a lender and what level of risk they may have extending credit to that customer.

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Explaining the Beacon or F.I.C.O score and its purpose is fairly simple. Explaining how the score is calculated is very complicated and determined through a complex algorithm. All of the entries in your credit report are considered when calculating the credit score. However, some factors are more influential than others when calculating the credit score.

Payment History

Payment history determines 30-35% of your total credit score. The payment history is an important component of your credit score. Here are the important considerations:

  • Do you pay your bills on time?
  • If late, how late?
  • How often do you pay late? Are you unable to pay on time?
  • How recent are your late payments?
  • Have any of your accounts turned over to collection agencies?
  • How many accounts have been turned over to collection agencies?
  • Have you filed for bankruptcy?

Amount owed

How much money you owe determines about 30% of your credit score. The important factors to consider are:

  • How many accounts do you owe?
  • How many accounts have balances?
  • What percentage of your credit line is owed?
  • In case of major loans, how much is owed in relation to how much was borrowed?

Length of credit history

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The length of credit history is not as significant as the above two but determines about 15% of your credit score. Simply put, the longer you hold on to your credit cards, the better your score will be. Some experts recommend not closing your older credit card accounts to build a good credit score.

New Credit

New credit comprises of 10% of your credit score. The new credit factor looks at how many new accounts have been recently opened, how often you have made requests for credit and the length of time since the credit inquiries were made. If you are shopping for better rates, it does not affect your score because inquiries are made for particular kind of credit during a short period of time.

Credit mix

The overall credit mix is approximately 10% of your credit score. The overall mix factor comprises of the mix of your credit cards, personal loans, mortgage loans etc. The more balanced the mix, the more likely this factor will improve your overall score.

Your score is important but far from the most important factor when getting approved for a loan with Loan Doctor. If you think your score is low don't worry, Your Loan Doctor Specialist we look at the whole credit picture and also the events leading up to your current situation. Whether your credit is excellent, good, fair, bad or horrible we can help you not only get approved at rates starting as low as 0% but put you on the path to rebuilding your credit should it be damaged.

When I qualify how much down payment will I need?

A down payment will help lower your monthly payment and save you a bit of interest in the long run but Your Loan Doctor Specialist will let you decide what down payment if any works best for them. Occasionally lending institutions may request a down payment but 98% of our loans require $0 down.

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Will credit inquiries affect my credit rating?

Inquiries on your credit report can indicate you’re a risk as a borrower. Too many inquiries might mean that you’re taking on too much debt or that you’re in some kind of financial trouble and are looking for credit to help you out. Several inquiries can reduce your credit score. Depending on how much information you have in your credit report, an additional inquiry might not affect your credit score at all. On the other hand, if you have a short credit history without a lot of accounts, an additional inquiry could cause your score to drop by a few points.

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Credit report inquiries will remain on your report for two years, but only those made within the last year are included in your credit score calculation. The most recent inquiries have the most effect on your score. If you're shopping around for an auto loan or more credit, you should know that when creditors check your credit, it places an inquiry on your credit report. Inquiries can add up, which is often interpreted negatively by creditors. For this reason, too many inquiries can actually make getting an auto loan more difficult. Don’t worry though; Your Loan Doctor Specialist will shop around for you. We know where and how to get you the best rates with the least impact on your credit score.

Will a cosigner help?

Of course! We have loans available for everyone but if you do have someone willing to cosign for you it may help secure a better rate and term. If you don't have a cosigner don't worry, your Loan Doctor Specialist has programs that will work for you regardless of your credit situation!

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What are the interest rates?

We have rates that start as low as 0% on new vehicles and 5% on used vehicles! Interest rates are based on your current credit situation and the year of the vehicle. Your Loan Doctor Specialist will work vigorously to secure the best possible rate for you every time without fail.

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How are my payments calculated? What are my monthly payments going to be?

Calculating a monthly loan payment is tricky business, and if the loan is not at a fixed rate, the rules change. Auto loans may be fixed or adjustable: Fixed means the interest rate is locked in and the monthly payment will be the same for the length of the loan; adjustable means the monthly payment can fluctuate based on market conditions, in particular an increase or decrease in the prime rate.

If interest on a loan is compounded, this also changes the monthly payment. Finally, the APR on any loan, is the rate number used to determine the monthly payment. The APR is a combination of the quoted interest rate and fees applied to the loan. Don't worry though; Your Loan Doctor Specialist understands how payments are calculated clearly and we can help you understand it as well.

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Your payment specifically will depend on the best+ possible rate we can secure for you and the vehicle you select. The rates, terms, and sale price are determined by the vehicle you choose. Don't worry; Loan Doctor's goal is to get you into the best possible car at a payment you can comfortably afford. We take pride in it!

I had a bankruptcy, or am still in a bankruptcy, can I get a loan?

Of course! If you filed for bankruptcy yesterday you will qualify for a loan today. At Loan Doctor we can start reestablishing your credit that fast! Regardless of the reasons you went into bankruptcy we can help you get on with your life. Conditions do apply but as long as the bankruptcy was your first one and was for more than $30,000. Also as long as the lenders offering the special program were not included in the bankruptcy you're approved! If your bankruptcy was less than $30,000 don't worry, Your Loan Doctor Specialist can help.

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I had a repossession can I get a loan?

Yes. A repossession is an awful experience to have to go through and it has a massive impact on your credit worthiness. Don't worry though; Your Loan Doctor Specialist can get you into a new vehicle and ensure it's at a payment you can afford. Conditions do apply but as long as the lenders that offer the special program are not ones that were involved in the repossession you're approved!

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Should I find a car first before getting pre-approved?

Let Loan Doctor get you approved first. The approval is an incredibly important part of the vehicle purchasing process. If you're looking for a specific model, don't worry, Loan Doctor has a network of specialists Canada wide with access to literally thousands and thousands of vehicles. Loan Doctor has buying power! If you're looking for a Suzuki or a Ferrari Loan Doctor will get the vehicle that best fits your wants and needs. We take pride in it! Some vehicles actually seem more desirable to lending institutions as they base their decision on credit but also "book" value. Don't worry though; Your Loan Doctor Specialist knows what vehicles book well and how to get you the best possible whole picture deal. Meaning the best rate, price, and term.

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How secured is my personal information?

Your personal information is important and needs to be managed securely. Sadly this is a huge problem with "lead generating" websites or "landing pages". These websites are the sites that like ours guarantee approvals, usually with a picture of smiling people holding car keys. The trouble with these sites is they sell your personal information to whatever dealer pays the most money for it. The problem with this is obvious. Your information is valuable and needs to be managed securely. This is why Loan Doctor will only deal with Loan Doctor Authorized Finance Centers that meet our high standards of professionalism. They need to follow a specific protocol when handling and storing your information.

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When you fill out an application on our secure web site you are putting your trust in us. You're in trusting us to keep your personal information safe and secure. All data is protected using the most advanced encryption method available. We take every precaution to protect our customer's information. When a customer submits sensitive information via the website, your information is protected both online and off-line. This site uses a Secure Certificate to offer secure communications by encrypting all data to and from the site. Hard copies of your information at the franchise level are also handled with the same care and concern. Personal information is valuable and credit is fragile. Don't worry though; Your Loan Doctor Specialist will diligently protect both.

Can I use my trade as money down?

Yes! You can trade your current vehicle in and use it as a down payment. Trading in a vehicle is a great way to reduce your payment, save you interest and the best part is you would only pay tax net of your trade value. So if you are buying a $10,000 car and your trade is worth$5000 you would only have to pay applicable sales tax on the $5000 difference! That can add up to a huge savings! If you have a lien, or existing loan owing on your trade that lien or loan would have to be paid. Don't worry though, your Loan Doctor Specialist can arrange to pay it off for you!

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Should I find a car first before applying for an auto loan?

We recommend that you consult with your Loan Doctor specialists first. Your Loan Doctor Specialist can quickly provide you with a pre-approval that we can then use to find the perfect vehicle for you. Also this method has the lowest impact on your credit rating because you don't have multiple credit inquiries from multiple locations.

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Is Loan Doctor for new cars or used cars?

We have an expansive inventory of both new and used cars, trucks, and toys. Your Loan Doctor Specialist will help you determine the best situation for you.

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How long does the application process take?

You will be contacted promptly by one your Loan Doctor Specialist. The approval process is usually within several minutes to a few hours, depending on how much credit information you can provide.

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Can I get a loan even if I have bad credit?

Of course! Whether you have bad credit, no credit, bankruptcy, repo, divorce, or you are new to the country - our lenders will work with you every step of the way to help you get approved!

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Are there any fees associated with your Approval Application?

This is a completely free service. In fact we have monthly giveaways for car audio and video upgrades, vacation packages, and home electronics. Check out our homepage to see what we are giving away this month.

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Do I have to finance or can I choose to lease a vehicle?

Leasing isn't as enticing as it used to be but if you decide a lease is what you need your Loan Doctor Specialist can arrange that for you.

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Can I still buy a car if I don't have a driver's license?

Yes, you can finance a car without a driver's license.

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I am currently in a lease, am I still able to get a car?

Yes. Your Loan Doctor Specialist can get you out of your lease regardless of what you owe.

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Can I pay my loan off early or would I have to pay a penalty?

Your Loan Doctor Specialist will never put you in a loan that penalizes you for paying it off early. Making additional payments or paying a loan off in full is always a good idea because it will save you interest in the long run.

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I have a car loan now and I want to lower my interest, can Loan Doctor Help?

Yes. Your Loan Doctor specialist lowers customer's current car loans interest rates every day.

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Do I need to have insurance?

If you are financing a vehicle, yes you need to have insurance on it before taking delivery. If you are paying cash for a vehicle you don't need to insure it but you wouldn't be legally able to drive the vehicle on public roads or highways.

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