Tag: Credit Rating

How To Get A Car Loan With Bad Credit Canada

How To Get A Car Loan With Bad Credit Canada?Most of the people are curious to find out the question; how to get a car loan with bad credit Canada? The simplest answer is; lenders that accept bad credit loan applications, and most of these lenders are looking for the basic car loan requirements, if you fulfill you’ll get it, you can find these bad credit car lenders online. Above all you may also get advantage of no down payment, and or no cosigner needed to apply for your auto loan. Today’s borrower’s has become really smart in term of asking questions according to their financial status but they should always take care of their over spending too. Anyway; some of car loan seekers also ask multiple things while putting a single question like; how to get a car with no credit and no cosigner and no down payment? They are asking three things in one sentence, isn’t it interesting? This is what they have learn online; I wish the new generation would learn to keep them in their means and no one would come under poor credit rating because your good, and or excellent credit ratings mean getting best possible rates and terms over your loan.

There are many different reasons of being into bad credit situation but you still need a car that will save your time and expenses to go to your workplace!

There is good news for you because you’re not alone and get stuck with bad credit. There are still options for people that require special kind of financing. Despite your poor credit history, which will obviously make an effect in determining which lenders you’ll be able to work with and the kinds of car loans you will qualify for, Canada Auto Finance is dedicated to finding you the best vehicle for your budget; sounds great!

How to get a car loan with bad credit Canada requires very basic requirements and are the primary concern for lenders that need to see your ability to afford payments. Even with bad credit, applicant is required to satisfy the lender that car borrower should be capable of making payments over the period of loan and afford the vehicle in due course. To avoid the possibility of getting rejected, these are the 5 basic car loan Canada requirements that you need to fulfill to get a good or bad credit loan Canada.

  1. Employment or Income
  2. Driver’s license
  3. Current address
  4. Bank account
  5. Down payment

For all those that comply with these above 5 basic car loan Canada requirements, they have a better chance of getting a car loan in Canada. For all the necessary information and documents that are required to get the process started, you should consult with your lender prior to your car loan application. If you’re applying through secure online form that will take only a few minutes to complete.

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How To Rebuild Your Credit History In Canada

Looking to improve your credit rating after having bad credit situation due to poor payment history or else, previous insolvency, bankruptcy or consumer proposal. Remember, there is no any quick fix but you can get back on track if you follow the right path. In your situation, the best solution is a prepaid credit cards or a secured credit card that are the easiest to obtain. It can help you to establish or rebuild your credit history, and let you access to credit when you need it.

If you’re a new to Canada having no credit history or if you’re a Canadian citizen trying to rebuild your credit rating for your ruined credit history, it’s not always easy to get approved for a credit card, where secured credit card is an easy to get credit card in all kinds of credit ratings and financial difficulties and its the one you need it to establish or rebuild your credit history. There are plenty of secured credit cards from various banks and non-banking financial companies that are being offered in the Canadian market today. You should be smart in selecting a good secured card as secured credit cards usually require processing charges, application fees and annual fees  where regular credit cards don’t.

Here’s an article that specially selected to reproduce it here from Financial Consumer Agency of Canada to help website visitors looking to get an authentic answer from a reliable source on; how to rebuild your credit history?

Rebuilding Your Credit

Even if you have made money mistakes in the past, you can rebuild your credit history and become a borrower in good standing. It is important to have a good credit history if you want to borrow money. The better your credit report and score, the better the terms of your loans and credit will be (e.g. lower interest rates).

However, you have harmed your credit history and score if:

  • you did not pay at least the minimum balance on your debts
  • you made late payments
  • you went over your credit limit
  • you missed one or several payments
  • you stopped making payments altogether
  • you have too much credit and you use it
  • your debt was referred to collection
  • you made a consumer proposal
  • you declared bankruptcy.

A bad credit report and score can mean you do not get approved for a loan, or you do not receive the best loan terms (e.g. higher interest rate).

How to rebuild your credit history

  1. Apply for a secured credit card. Secured credit cards require you to leave a deposit with the credit card issuer as a guarantee. The deposit is usually equivalent to the card limit, but can be higher. For instance, if you want a limit of $500, you may be asked to leave a deposit of $500. Once you’ve shown that you pay the balance regularly and have built a payment history, you can ask that the security requirement be dropped and that the deposit be returned.
  2. Make at least the minimum payment by the due date. If you cannot pay off your balance in full each month, make at least the minimum payment on each of your debts on time. Late payments will count against you and negatively impact your credit score and credit report.
  3. Do not apply for too many credit and loan products. Having too much credit can also negatively affect your credit report. Keep your available credit at a minimum. Do not fill in too many applications for credit and loans because every time you do, your credit history is checked. Each credit check can affect your credit score.
  4. Review your statements. When you are in debt, avoiding your monthly statements may cost you. Mistakes happen and you only have a limited time to correct them. Always review your statements to make sure there are no transactions charged in error and that your payments are recorded correctly. Report any mistakes as soon as possible.
  5. Check your credit report annually. You are entitled to receive a free copy of your credit report annually from each of Canada’s two credit rating agencies, Equifax and TransUnion. Check your credit report annually for errors and get them corrected as soon as possible.

Prepaid cards do not help you build credit. You may choose to use a prepaid card as a payment option, but its use is not tracked by the credit rating agencies.

Productive Suggestion: Use credit responsibly

“There are no quick fixes to repairing your credit history. You have to prove you are a responsible borrower to lenders, and that may take time. Whether you are rebuilding your credit history, or trying to maintain a good credit score, you should always use credit responsibly.”

Alternate to secured credit cards to rebuild your credit history

How to repair your credit in Canada or rebuild your history? In the past secure credit card is the only option available but now Canadian market is offering another innovative alternate to establish, and or rebuild your credit history is a Credit Repair Loan that also works in bankruptcy and consumer proposal issues beside don’t overburden their customers in relation to high interest rate secured credit cards that ask for the cash “upfront” at the time you receive your credit card. As many of such consumers trying to rebuild their credit may have a difficult time doing so.

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How Credit Cards Are Used To Build Your Credit Score?

How to build your credit score with credit cards fast? Get a credit card as best credit card build your credit score, use it to make small purchases and other expenses on what you usually pay cash for your living then make a full payment of your credit card bill when its due, keep this practice on regular bases.How to build your credit score fast, easy and cost effectively? If you ask online for the same question, it will highlight majority of solutions that depend on credit cards because it been using for the purpose from a long time that can cost you a credit card application charges, annual fee and or security advance to settle your credit limit in case of secured credit card to begin. To build your credit score, you should require adopting an economical and easy to follow financial way, there are people who may think a loan on lower rates will help them to build their credit score, although they can do it with their credit cards without paying any interests. Yes, if you spend money on your day to day expenses through credit cards and pay back in full before the due date, you will save the interest amount beside your financial transaction keep building up your positive credit history with every transaction you complete.

Calculating a credit rating depends on FICO scoring model set by the credit reporting agencies working in the country, as it’s a standard system in the USA and Canada, it bring  same effects while determining different factors of contribution on the FICO scale in both the countries. Two of the major factors that can boost your credit score, holds 65% effect on your credit rating; 35% of your credit score is based on your Payment History and 30% on your Debt to Credit Ratio, and if you can manage to handle these 2 credit rating factors successfully, it will help you in maintaining a good credit history for you. Moreover, if you are practicing good care of your credit liabilities for a longer time than you can also awarded with the 15% contribution on the FICO scale for your Credit File Age that makes your total contribution of 80% towards FICO credit score range to get advantage of boosting your credit score, where credit cards are the easiest approach to be used to build your credit score.

If you have credit cards and using them to purchase your everyday expenses while paying off your credit card bills on regular bases for the full amount each month, it will help you in establishing your good payment history to enjoy the 35% advantage on your credit score and if you have maintained your credit cards usage history same way for a longer time, it will award you extra 15% positive increase on your credit score.  Moreover, keeping up with the regular payment history of your credit cards bills may deliver some portion of your remaining balance to the credit bureaus because of the nature of difference between the billing dates and payment due dates but it will not affect  negatively because you are not responsible for any interest charges that’s the reason keeping up with the regular payment history will also help you in maintaining your debt to credit ratio lower as possible to award your 30% credit boost to your credit score from this head.

Credit cards and credit rating have a great relationship with each other as most of the people used to hold credit cards that’s the reason they are aware of the fact; how fast it can make an impact on their credit rating. Credit cards debt is the most swear kind of debt that lot of people want to get rid of due to its high rates and quick reporting to the credit bureaus but on the other hand it’s been used from a long time as a traditional method to build credit score. Although there are alternate ways to build your credit score today (Credit Repair Canada) but most of the people still want to go with this traditional method because it’s simple, fast, and easy to follow. Credit cards are not even used to build but also considered as an effective credit instrument to rebuild bad credit rating. Credit building credit cards Canada offers lot of secured and unsecured credit cards for bad credit and or no credit in the market today, although your chances to qualify for an easy credit cards to get in Canada between these two options mostly depend on applying for secured credit cards because they generally don’t require a credit check but it doesn’t make any difference on your purpose of building your credit score and or rebuilding credit, you can easily get one according to your choice.

Remember; Always pay off your balance in full each month! primary purpose of the credit cards bring a safer way to shop without carrying cash and are built for people with good to excellent credit scores that keep up with their regular payment history. It’s highly effective nature of reporting to the credit bureaus to determine your time to time credit history and score have brought up a need to use it for a purpose of building credit scores. That’s the reason lot of credit card companies come up to offer credit cards to people with no credit and bad credit rating. Credit cards for rebuilding bad credit and or building no credit score are specially designed to fill up the need of such applicants who’ve had no credit history, past payment issues, loan default or bankruptcy. As best credit card build your credit score fast, most of the applicants put this same question; What is the best credit card? It’s deficult to answer because there are plenty of good names and brands that are availble to get advantage of their service for the same purpose and on the other hand it depends on your financial status to get approval for one of the best credit card for you. You can get a list of lot of credit cards ready to go with your approval crieteria to compare and find one of the best credit card for you. Apply and get approved for one of your desired credit card to start working to build your credit score today.


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