If you have bad credit, no credit, you don’t need to despair, there are lots of lenders out there that cater to clients with credit issues in their past. And since the risk is higher, so is the interest rate, but it does not always have to be a lot higher than prime. it really does depend on your credit, and can be determined through our application here. There are some minimum requirements when it comes to bad credit lending, and Mr Finance BC is more than happy to show you how you can meet these requirements and qualify for the car loan that you need. There are multiple steps involved in gathering the appropriate documents and information the lenders need, and we start by evaluating your credit history as well as your current financial situation which is a lot more important. Then we will inquire to multiple lenders and apply for the loan that best suits your needs, and is the most competitive rate and term.

Car Loans in BC

There are a lot of private and public lenders including banks and credit unions that will consider a non-prime loan application, but that does not mean we will knock on their doors. That is a practice being undertaken by a lot of loan agencies out there, and this only hurts your credit even more, and you need to be wary of that. You are in a somewhat advantageous position now though, since a lot of the smaller lending institutions are competing with the large banks and when there is competition, the consumer ends up coming out the winner, and therefore getting approved for a bad credit car loan may be more comfortable than you had imagined before. This is indeed important, one because the larger lenders tend to look at your credit history with a fine tooth and comb, whereas the smaller credit unions are willing to let a few items fly under the radar, specially if you are in a much better financial situation. If you have a low income, you may still be approved for an auto loan, as the lender is investing in a vehicle that you will be helping to pay off, and therefore there is always a valuable asset to guarantee their loan, as opposed to a personal loan, where you may be simply applying to use for renovations around the house.

Car Loans and debt to service ratio

You may have heard this terminology before, debt to service ratio. This is an important piece of information as the lenders use this to weigh in on your ability to pay off your car loan. Essentially the way its calculated is adding up all your income on one side, and your debts, loans, credit cards, rent, etc on another side, and a number is driven from this relation. The lower this number is the higher your “disposable income” and the higher your chances of getting approved for a bad credit auto loan. Make sure your credit cards are paid off and any outstanding loan that you may have is in a good standing with the lender.

Income requirements for a loan

There are a few things the lenders look at when considering your application and one of the important ones is your income. This does not mean that you require a high income, what they are more concerned with is that you have a secure source of income and that you will be employed till the end of your loan term. This ensures you will have the funds to pay off your loan, and make your payments on time. So factors such as your position, how long you have been employed, and also whether you are on salary or commission is a few of the items they look at. We are always on your side in making sure the lenders get the accurate  information and they see the whole picture rather than just looking at some numbers and trying to evaluate whether you qualify for a car loan or not.

Let Mr Finance Help You get a Car Loan with Bad Credit

We have a great network of lenders which we have used over the years and through our relationship with these lenders, we can offer you many options when it comes to bad credit car loans. We are also directly working with multiple dealers which enables us to represent you when it comes time to select a vehicle which means less work for you, since you are basically getting an insider deal. We make getting approved for a car loan quick, easy and comfortable. We have a no pressure, no obligation, no hassle process, and we make the car buying experience very pleasant for you. You can apply for a loan from the comfort of your home, and we will fascilitate the loan process though email and phone calls. You only need to come down to take delivery of your car.

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