There are lots of reasons why you might not have the best relationship with the credit bureaus and as a result, a bad credit score, which may make it difficult for you to take out products such as a credit card, mortgage, line of credit, personal loan, or car loan. Here at DriveNation, our goal is to help everyone get approved for car finance, regardless of their credit history.
What is a bad credit score?
A bad credit score is a rating that’s based on several factors, including:
- No credit history- for example, if you have never had a cell phone contract or secured credit card, or if you have recently moved to Canada
- Poor payment history, such as late or missed payments on bills or loans
- Mistakes on your credit report
- Using too much of your credit limit (poor credit utilization)
- Leaving old credit accounts open
- Financial difficulties arising from bankruptcy, divorce, or loss of a job
- Lack of proven income due to seasonal work and slow payment periods
When lenders see the above issues, they are more likely to refuse credit products until your score is higher. If they do allow you to borrow, you may only be entitled to products with high-interest rates.
How can we help you?
At DriveNation, we offer a variety of services to help you get back on your feet and improve a poor credit score. To start with, we’ll assess your history by completing a quick and easy free credit check that won’t affect your score. Even if you don’t have good credit, we may be able to offer you a loan, as we have one of the highest approval rates in Canada, standing at 99%. Plus, we have access to more than 20 different lenders, including one high-approving lender that’s exclusive to DriveNation, so it’s easy for us to find you a great deal.
We can also help with existing car loans at higher interest rates. If you can show that you always meet the minimum payment by the due date each month, we might be able to get you a better rate.
Ways to obtain a good credit score
We can help you build up your credit rating with credit reporting agencies by entering you into our credit rebuilding programs. Our experts can help to assess your personal finances, improve your score, and secure you an auto loan. Ways to improve your score include:
- Settling any existing debts and late payments, and setting up repayment plans if needed
- Reporting your rent payments to Equifax or TransUnion
- Make sure any errors on your credit report are rectified
- Trying to build your credit with other financial products such as cell phone contracts
- Limiting borrowing
- Reducing overdraft use
Whether you need a better interest rate, are worried about securing a loan, or need to build up your credit score from scratch, our friendly team is on hand to help create a stress-free program to get you closer to your dream car.