Bad Credit Car Loans and Auto Financing Hamilton, Ontario
Hamilton vehicle financing for bad credit in Ontario
The interest rate for a car loan is the amount of money that the borrower will have to pay back to the lender in addition to the loan principal. For example, if you take out a loan for $10,000 in order to buy a car, you not only have to repay that loan, but you will have to repay interest on top of the loan.
If you get an interest rate of 6 percent, then you would need to pay back an additional $600 on top of the principal amount of money that you borrowed. Credit History Your credit history will affect just how low the interest rate is for your loan and how much money you can take out. For this reason, borrowers with brad credit will usually have higher interest rates and lower loan caps than borrowers that have proven that they are able to repay loans on time. When you speak with a loan officer, be able to explain why you have bad credit.
If you are able to prove to the officer that you are in a different position now than you were when you got the bad credit, you may be able to get a better interest rate. For example, you may need to show the loan officer that you have a job that will allow you to pay back the loan amount on a regular basis.
No matter how bad your credit is, it is always possible to get a car loan. The amount of the loan and the interest rate on the loan amount may vary a great deal depending on your credit history, but remember that getting a loan is always possible if you are in need. Contact one of our sales agents today to discuss loan options and to match your budget with a vehicle on our lot.
How Does Car Credit Affect Your Credit Score?
Your credit score is often something you have worked years to polish up and it is nothing to be taken lightly. At Loan Doctor, we understand that you might be wary of how an auto loan in Hamilton can affect that score. When we first inquire into the bureaus about your numbers, your score will receive a small dent as it will anytime there is an inquiry.
However, after a few months, the fact that you have a loan that you have been properly paying on can increase your numbers by proving you are responsible and a safe bet for future creditors. It is usually a benefit in your favor to have recent history and, if you stay on top of the loan, this can be placed as a positive in your report.