Bad Credit Loans in Airdrie, AB
People are fundamentally good. We all start out each day with the best intentions. However, hard times and the financial consequences that can follow can be devastating. Just because someone is having money troubles, that doesn’t also mean they don’t deserve to have a safe and reliable automobile to help them live their life on their terms. Davis Chevrolet really believes in this concept and wants to help people with less-than-perfect credit scores find the automotive financing they need. Follow along with us as we take a look at a few pieces of important information people might need to find the financing help they’re looking for.
What Does Getting a Bad Credit Loan Mean?
Credit scores fall in a range between 300 and 900 points. Most lending institutions consider people with a credit score of 600 or lower to fall into the bad credit category. Functionally, there is no real fundamental difference between a bad credit loan and a good credit loan. People looking for either will fill out a loan and will need to pay it back over the period that is agreed to.
The chief difference is that people with lower credit scores are charged higher interest rates because the bank, credit union, or other lender considers them a risk. While this sounds like some bad news, the upside is that there are many places that will work with people looking to improve their credit by providing flexible terms.
Additionally, higher interest rates don’t have to last for the entire term. Making consecutive, on-time payments can put the borrower in a position to apply for refinancing, which could end up providing some significant monthly savings.
How Do You Apply For a Bad Credit Loan?
There are a lot of places to start looking to apply for a bad credit loan. The most important thing people in this situation need to do is shop around and look for the institution that will best meet their financial needs. At the same time, if someone is looking for a loan, they should also make sure that they are up to date on all of their other financial obligations. People can increase their odds of getting approved for a loan if they:
- Have a stable income capable of meeting the loan requirements
- Finding a co-signer with a stronger credit profile
- Pay off accounts to lower the debt-to-income ratio
- Save up money for a downpayment
Can You Buy a New Car With a Bad Credit Loan?
If someone can obtain a car loan with a lower credit score, they may be limited in what they can afford to take home from dealerships like Davis Chevrolet. It may be possible to get a loan for a new vehicle, but that shouldn’t always be the goal. Owning a new vehicle is going to come with some additional costs, likely including more expensive insurance. Opting for a pre-owned vehicle is probably going to be the most advisable route to take for people looking for a subprime auto loan.
Our financing team has a lot of experience with helping people from all kinds of backgrounds find what they need to take one of our safe and reliable vehicles home. Make an appointment with us, today, if you need some help getting back on the road with an affordable car, truck or SUV.