For many traditional lenders, banks and credit unions included, the word ‘credit’ has become a dirty word.  One need only read the paper to realize that banks are lowering credit limits, scrutinizing potential new customers and tightening standards for extending credit.

The result?  Traditional lenders denying credit to those with less than perfect credit.

There are ways for the ‘credit challenged’ to raise their credit score, which lenders use to decide when extending credit and determining associated interest rates.  A few tips to help you raise your credit score are:
• Pay your bills on time and make the minimum payments on your credit cards and loans each month.
• Keep your oldest accounts open. Longevity looks good on a credit report.
• Don’t use more than 30 percent of the credit you have available to you.
• Don’t open new accounts all at once. That looks risky.
• Keep your bank records clean. An insufficient funds problem will show up on your report.
• Diversify. Having a variety of loans, such as a mortgage or car loan, that you pay on time each month helps your score.
• Pay off your balances. Don’t keep transferring your balance. If you can’t pay your bills, contact your creditors to work out a payment plan or see a credit counselor.

If you find yourself with less than perfect credit and need a car loan, contact United Auto Credit today.

Providing Bankruptcy and Bad Credit Car Loans  in Ajax, Mississauga, Scarborough, Thornhill and Toronto  Ontario Canada.

Bad Credit related financial history caused by a Bankruptcy could lead to problems for individuals seeking loan approval for new or used cars.  The main problem with bankruptcy declarations is that this negative history may stay on your credit record for up to 7 years.  Acquiring new or used car loan credit from major lending institutions while in the midst of a bankruptcy is difficult. Although seeming impossible, it can be done.  But first, you’ll need to get a few things in order before securing a car loan.

1. Improve your credit score – Get a copy of your credit history.  This can be done easily enough via your bank or through Equifax. Once you know your credit score and rating, you can take steps to improve it.  One such way to do this is by making timely and consistent monthly payments and paying off outstanding dues.  This can do wonders for your credit score in the short term and can help improve your credit rating before applying for a new or used car loan.

2. Know your creditor’s requirements
Make a list of possible creditors and/or lenders that are likely to give you a “bankruptcy or bad credit car loan.” Prepare a checklist of their requirements.  Following the completion of your checklist, it will become clear as to which creditor is best for you. Knowing credit requirements makes it easy to realize what your future commitments and liabilities are going to be.

3. Leasing “factor”
Some creditors will provide you with the auto loan of your choice, provided you sign a leasing contract for a certain time frame, usually 6 to 12 months, or more. Over the long run, lease options may seem costly; however, keep in mind that your monthly installments are affordable, get reduced over time and that timely payments do help to improve your overall credit score.

For bankruptcy car loans or bad credit car loans, contact United Auto Credit today.

Providing Bankruptcy and Bad Credit Car Loans  in Windsor, Leamington, Blenheim, Chatham, Ridgetown, Wallaceburg, Sarnia, Petrolia, Rodney, St. Thomas, Strathroy, London, Goderich, Aylmer, Tillsonburg, Ingersoll, Woodstock, Brantford, Simcoe and Hagersville Ontario Canada.

A study conducted by J.D. Power and Associates between February and May of 2009 reported that close to 70% of GM, Ford and Chrysler dealers in Canada, and more than 50% of Asian auto-based dealers in Canada, experienced a drop in auto credit approvals for their customers over the past year. 

The study was based on 950 dealers and further shows the effects of a down economy and tightening consumer credit environment.  The study went on to say that about 30 percent of the 950 dealers polled expect a drop in business in the next year.

If you’ve been turned down for a car loan at your local auto dealer, give us a call.

For more information, visit United Auto Credit – providing Used Car and Bad Credit Car Loans  in Ottawa, Hawkesbury, Alexandria, Cornwall, Morrisburg, Kemptville, Smith Falls, Perth, Prescott, Brockville, Arnprior, Renfrew, Pembroke, Gananoque, Kingston, Napanee, Bancroft, Picton, Belleville, Trenton and Tweed Ontario Canada.

Owing more on your car than it’s worth is referred to as an “upside down” car.  And considering the state of the economy and the auto industry, there are literally thousands of “upside down” cars on the road today.  In a nutshell, these are cars whose value is worth less than the amount still left on the car loan.

So the question remains: “How did so many people wind up owing more on their car than it’s actually worth?”

In retrospect, many people  bought into extended car financing; some as long as five and six year loans where  balances declined at a snails pace.  Furthermore, many of these car financing companies did not require that car buyers make down payments, thereby compounding the issue and putting many car owners into the “upside down” car scenario that they find themselves in today. 

According to Experian Automotive, the average car loan is still nearly five years and $19,000 at an average rate of 8.37%.

It is possible to refinance a car loan.  In doing so, it’s also wise to shop for the best interest rate in order to keep payments lower and prevent “upside down” car syndrome down the road.

Consumer advocates recommend financing cars for up to five years or less and buying cars that hold their value better.  It is also a good idea to make some down payment.

Also, buying a cheaper car and/or a good used car and keeping it longer will also keep it from going upside down.

For more information, visit United Auto Credit – providing Bad Credit Car Loans and Bad Credit Car Financing in Oshawa, Pickering, Claremont, Ajax-Pickering, Whitby, Brooklin, Uxbridge, Udora, Porty Perry, Blackstock, Hampton, Orono, Newcastle, Clarington, Port Hope, Cobourg, Trenton, Belleville, Picton, Tweed and Bancroft Ontario Canada.