Good Credit? Bad Credit? WE CAN HELP!
Can buying a new or used vehicle through Ontario Automotive Financing in Ottawa really help me re-establish my credit?
Yes, when checking with a Canadian Credit Bureau, many lending institutions look at automobile loans closer than any other type of loan (other than mortgages) to verify your credit standing. Secured credit cards are no help at all – you are really borrowing your own money with the glory of having a piece of plastic in your wallet. Buying a vehicle from a “buy here, pay here” lot that does not report to the credit reporting agency simply doesn’t help because it does not reflect on your credit record. Consumers also can take advantage of our Non-Prime Sub-vented Financing Program which offers financing rates as low as 4.99%. We will also review with you how a 0% financing program can be made available to you.
How Can You Improve Your Credit?
- Build a Spending Plan – Take an honest look at your monthly income and expenses. With that, you can build a budgeted spending plan to ensure you’re not spending more money than you bring in each month.
- Pay Out/Consolidate Outstanding Debts – One of the biggest considerations that goes into the creation of your credit score is the total amount of debt you are carrying. If your debt-ratio is too high, lenders will be less likely to approve another loan. Consolidating your debts into one monthly payment can reduce your monthly expenses and save you money in interest. We can help with this!
- Take Out a New Loan – Once you’ve stabilized your financial situation, it’s time to show lenders that you’re on a new financial track by taking out a new loan and paying it off on time.
Why is Ontario Automotive Financing your Best Option to Re-Establish Your Credit?
- A car loan is a favoured way to establish or re-establish your credit because it is an installment loan as opposed to a revolving credit. An installment loan is rated better on your credit bureau because once with every monthly payment, you lower the loan amount.
- A car loan principal balance is usually higher than a $1000 credit card. Many lenders approve loans/credit based on what you have listed on your bureau. If you have a $10,000 car loan, it is easier to get a higher amount of credit next time. If you have a $1000 credit card, you will likely only get another $1000 credit card.
- Leaving your credit alone does not help your credit.
- When you take a car loan from one of our approved-lenders and you make your payments on time and every time, you will have the opportunity to trade your car in 12 months and potentially lower your interest rate. This happens because you have proven to the lender that you have had credit issues in the past but you are on your way to rebuilding your credit. You have also built a relationship with that lender, so they will be more likely to provide you with the opportunity to lower your interest rate.
- All of our lenders report to the credit bureau, providing you with an opportunity to show a loan that you have paid well. If you choose to trade the vehicle in, you will have a paid off account on your credit bureau, improving your credit score.
The smart choice is to rebuild your credit with a car loan and we will show you how. Contact us for a no-obligation consultation to discuss what steps to take next!
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