Bad Credit Truck Loans: How to Get Approved Easily
Bad Credit Truck Loans: How to Get Approved Easily
Posted on March 19, 2022
We want to help you get a bad credit truck loan. Whether for work, leisure, or family. Working with experts like us can make the experience go much smoother.
A Bad credit truck loan is designed specifically for those who have experienced financial difficulty in the past or who have yet to build a credit score. They are now a mainstream form of finance that carry none of the stigma they once did.
People from all walks of life use bad credit car loans to get trucks and you can too!
There are a few recommended steps you need to take to get one though.
Getting a Bad Credit Truck Loan
It doesn’t matter whether you’re buying a Focus or F-150, the process is exactly the same.
Check Your Credit Score
Your credit score determines who will lend to you, how much you can borrow and what interest you’ll pay. The higher the score, the better deal you’ll get. The lower the credit score, the higher the interest you’ll pay.
Check your credit report and your score in the first instance. Check for errors and have them corrected. Check your whole report to make sure everything is completely accurate.
Save for a Down Payment
Depending on time available, if you can save or use money for a down payment, all the better. The more you put down, the less you have to borrow and the more willing lenders are to lend.
A down payment insulates the lender from too much loss if you default and they do love it when you put your money down.
Build Your Credit Score
Again, depending on time, do what you can to boost your credit score. Use a credit card, fix those errors in your credit report, pay off some outstanding debt and generally clean up your financial act as much as possible.
If you have any overdue balances, make sure to pay those first. If you owe a lot to a lot of people, pay off what you can, when you can. It will all go to help improve your credit score.
Prepare Your Trade-in
If you’re trading in, make sure the vehicle looks its best. Clean it up inside and out, take care of any easy repairs, have it serviced and prepare its paperwork. The better you prepare the trade in, the less work the dealership will have to do to prepare it for sale. That will be reflected in the offer they make.
Research current values independently of the dealership to make sure you know whether you’re getting a good deal or not.
Research New Trucks
Set a needs and wants list for the new truck. Needs should address anything it must be able to do for work and wants can be anything you would like it to have.
Do your research on makes and models, check prices, check incentives, check both new and used and come up with a realistic budget that will get you what you want.
Get Loan Preapproval
Car loan preapproval is like a dry run. It shows you roughly how much you could borrow at what rate over what period. Work out what you’ll need to borrow to buy the truck you need and subtract the approximate trade in value of your current vehicle.
This should give you a rough idea of how much you’ll need to borrow, which you can use in the preapproval process.
Finally, find a truck in the dealership, bring your trade in and all your paperwork and apply for the loan. If you work with our auto loan team, we should be able to secure a great deal on a loan while offering a fair price for your trade in.
That’s all there is to it!
If you're ready for a car loan in Southern Ontario, we'd love to help with that! simply fill in the form below to get started.
Car Loan Pre-Approval