Secure Collections Auto Loan When Agencies Calling You
Car Credit Kingston – Get Approved on Car Loans After Late Payments
Life is full of little surprises. Unfortunately however, some of those little surprises can leave a substantial dent in your bank account, forcing you to miss payments on your loans.
And when these repayments snowball, your car can be repossessed or you can be forced to sell it to settle your debts.
If you’ve made some late payments or are currently past due on a few of your bills, don’t despair. Where there’s a will, there’s a way! Follow our guide for slow credit auto loans and you’ll be back on the road in no time.
Get your hands on your credit report to identify your slow payments
Your credit report is the first place to start. Each Canadian resident’s credit history is reported with two separate agencies: Equifax and TransUnion. Inconsistencies can arise on your report from each bureau, so it’s important to request a copy from both organizations.
You can request your credit report in the mail for free, or order it online for a fee. For an even simpler and less expensive solution, our car loan advisers at Car Credit Kingston will request it for you. This process is instant and it’s free.
Based on this credit report, our Car Credit Kingston advisers will identify and explain the slow payments listed on your credit profile. And we’ll tell you which items to rectify before submitting your loan application.
Take Care Of Current Payment Issues
Reviewing your credit report will reveal loans that are listed with two types of standings.
R2 indicates that although you are sometimes slow making payments, they are never more than 30 days behind. An R3 rating highlights payments that have been made up to 90 days late, or remain in arrears.
If your credit report shows an R5 rating or higher, you should follow our guide for securing a car loan with a bad credit history here.
There is no action needed for R2 and R3 ratings if they are now up to date. However you should rectify outstanding payments that are appearing as R2s and R3s. If you are unable to raise the money to pay your loans and bring them up to date, call each lender to make a special repayment arrangement you can afford. Even small repayments show future creditors you are committed to your lenders, helping you secure your next loan with an interest rate you can afford.
Securing A Cosigner or Guarantor
If you’ve been slow in making payments and are having trouble finding loan approval, a cosigner with a good credit rating can provide you with the security your potential lenders are looking for.
If you don’t have a friend or relative within Canada to support you as a cosigner, you can offset this requirement with a large down payment on your new loan. The size of this down payment will depend on the price of the car you plan to purchase. Generally, the finance company will require a down payment large enough to cover taxes plus 10 to 15% of the selling price of the car. For a car valued at $10,000 this would equate to approximately $2500. Your down payment can also come from your existing equity in the car you are trading in.
If you still fall short of the required loan down payment, contact a Car Credit Kingston adviser to find an alternative solution for your loan approval.
Find A Dealer That Specializes In Slow Payment Auto Loans
Traditional dealerships can assist you with loan approval if you are only a little behind on a payment or two. However when your slow payment history is more complicated, you’ll need the help of a specialist to connect you with a lender who will approve your loan.
At Car Credit Kingston we’re committed to assisting people in Kingston and Ontario in finding loan approval for slow payment auto loans with as little hassle as possible. Not to mention the lowest interest rates.
Dealing with your past debt can be tough on your pride. In your commitment to clear your bad credit rating, you need to partner with a loan adviser who respects your integrity and is dedicated to seeing you through the entire process. Each time you apply for your credit report, the application is noted and can inhibit your loan application process, so maintaining a healthy relationship with one loan adviser from your initial credit report application to you loan approval is important.
At Car Credit Kingston we believe every one deserves a second chance, and we want to see you back on the road in no time.
Protect Yourself From Late Payments With Your New Loan
Protect yourself from falling behind on your new loan repayments by committing to a monthly payment that fits your budget and your income. This means foregoing the red sports car or the prestige of that Lexus for now.
Before you decide on your next car, make sure you plan a safe budget that protects you from a possible rise in insurance and interest rates. Leave enough in your budget for dinner and movies, as a car is little comfort when you’re stuck at home with nothing in your wallet.
In your first six months of owning your new car, plan to put aside at least one extra payment as a safety net, and only use it if the need arises.
And if you feel as if your payments are spiraling out of your comfort zone, contact a credit adviser at Car Credit Kingston for advice and support. We’ll help you figure out a new action plan and guide you back on track towards protecting your credit score.
Book An Appointment With Someone Who Can Help
Take advantage of the great services and support Car Credit Kingston can offer. Book an appointment with a loan adviser today, and we’ll spend time this week to review your situation and help you secure a new loan.
and you’ll hear from us promptly. We’re here to help you now and for many years to come.
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Monday - Thursday
9:00am - 8:00pm
Friday - Saturday
10:00am - 5:00pm