There are several ways to arrange credit for a vehicle; some are better than others.
Walking into a dealership with a Pre-approval in your hand gives you bargaining power and flexibility. It also helps you avoid the common sales tactic of mixing up the vehicle price with financing costs. On the other hand, going into the dealership without the foggiest notion of how you are going to finance your purchase is setting yourself up to be manipulated and possibly overpay. Here are several places to look:
Banks have been in the auto loan business for almost as long as there have been autos. They generally have very specific, conservative loan policies and may only cater to those with better credit references. As such, banks are in a position to offer some very competitive loan rates. Since you probably have a relationship with at least one bank already, that might be a great place to start your financing search. Most banks have Web sites where you can check their current loan rates, but if you decide to apply for a loan, you should stop by a branch office and deal with a real person. It’s a good way to control where your personal information goes, and by avoiding mistakes or misunderstandings, you might walk out the door with a pretty good interest-rate offer.
Credit unions operate a lot like banks but they lend money only to their members, who are also owners of the credit union itself. Because they are nonprofit, their operating costs are fairly low and their lending rates can be quite competitive. Many people belong to credit unions just to take advantage of the convenient loan policies.
Finance Companies: Almost every automaker has its own finance company, such as GMAC or Ford Credit, but there are also independent small companies like us, CreditHelpFinancial. We operate like a retailer and work for you the customer. A lot of dealerships will shop you around (see online banks below). This is a process where they shoot your application to many different lenders and hope for the best. At CreditHelpFinancial, we will sit down, discuss your credit situation with you and, if necessary, talk to the bank representatives before even submitting an application. We will also go over your credit report and explain it to you. Once we secure an approval for you, the work really starts. Our job is to find you the lowest interest rate available period.
Dealerships: Along with arranging loans from automakers, dealers work with banks and other independent sources. One benefit to arranging financing through a dealer is convenience. But often the rates they quote include a markup for the dealership itself, which can make these loans expensive. Armed with offers from some of the other sources we’ve mentioned, you may be able to negotiate the dealer’s initial quote down to something attractive. But you must do your homework first. Also, some dealers advertise that they will work with buyers who are credit risks, but you should count on paying a high APR.
CreditHelpFinancial is here to help you secure the lowest financing rate possible. Ask about our Lease to Own or Buy Here Pay Here auto loan programs.
Beware of Companies Who Claim to Repair Credit
Beware of companies that promise to help you re-establish your credit for a fee. Their ability to change the information that appears in your credit file is no different than anyone else’s. Only your creditors are able to alter this information; therefore you do not need to pay a third party to obtain, discuss, review or make changes to your credit report. You have the right to access your information and make changes to your file if there is an inaccuracy or if you want to include a comment.
If you are thinking of hiring someone to repair your credit, remember this:
A credit bureau will not remove accurate negative information from your credit report before the legal time period has expired; therefore, do not believe anyone who claims they can get negative information removed from your credit report faster than is legally required.
There are no “loopholes” or laws that credit repair companies can use to get correct information off your credit report.
No credit repair company can do anything you can’t do for yourself. It is impossible for a third party to make changes in your file if the facts have been correctly reported. There are individuals and companies that claim they can fix a bad credit file. This is not the case. If a file includes accurate, yet negative information about your credit history, this information cannot be changed. Information will only be changed when your file contains an inaccuracy.
The only way to rectify a poor credit rating is to adopt sound credit practices for a period of time. You can get more information at: www.ic.gc.ca
Car loan programs are one of the best methods to repair your credit ask the professional team at CreditHelpFinancial about our three step program and how we can help get you on the road and the right track.