Having bad credit puts you in a situation where you are left with quite a few options to apply for the loans. The reason behind the same is that the lenders be it banks, or any other money lending institutions hesitate to lend the loan to someone who has a bad credit score. But there are certain options available for people who have a poor credit score. There exists bad credit car loans specifically designed for people who are juggling or struggling with a low credit score. Well, you can apply for this loan from Bad Credit Car Loans Prince George. Let us have a look at how one can apply for bad credit loans.
How to apply for these loans?
The process to apply for the loan and getting it approve is simple and quick. All that you will be required to do is fill out an online application form. After filling the online application form you will be required to submit a list of few documents. The list of documents to apply for the loan and getting it approved is minimal. The list of documents includes the following.
List of documents to apply for bad car credit loans
- Title of your vehicle.
- A lien-free vehicle.
- Insurance and registration of your vehicle under your name.
- The second set of keys to your vehicle.
- Proof of permanent residency in Canada.
- A valid Canadian driving license.
- Proof of your legal age according to your province.
These are the documents that you will be require to present while applying for the loan. After submitting the list of documents you will receive a call from our experts to discuss the loan amount. The amount of the loan will be decide after looking at the condition of your vehicle/car and keeping in mind its market value. This is how you will be able to apply for the loan. Another best thing that you need to keep in mind about the loan is that the loan approval takes place the same day you apply for the loan.
Getting a bad credit car loan is the only option that one can opt for when one has a poor or low credit score. Well, there are several reasons why one has a low credit score or bad credit score. Let us have a look at the reasons and look for the solutions for the same.
What are the reasons for a bad credit score?
Well, there are several reasons why people end up having a bad credit score and thus facing issues and crises when it comes to applying for a loan with banks or any other money lending institutions.
- The foremost reason for a low credit score could be payment history. Delays in payments in case of a loan or any bill will result in a low credit score. If one happens to default on the EMIs of the loan they will result in scoring a bad credit score. So making delays in any kind of payment will put one in trouble and the person will end up having a low credit score.
- Another reason for low credit scores could be multiple loans. If an individual happens to take multiple loans at different banks the burden of the debt increases and the ability of a person to repay the loan goes down. So multiple loans can sometimes act as a problem for a person and can result in a low credit score if he/she fails to pay back the loan amount.
- Hight credit utilization rate can also result in a low credit score. People have a notion and believe that if they pay their credit card dues then it will not impact their credit score which is not true. Even if one happens to pay the due amount in full but is making use of the credit card more than 45-50% then the utilization of credit card is high and it is therefore bringing down the credit score.
These are the reasons why people end up with a low or a bad credit score. Now there are certain ways by which one can improve low credit scores. Let us have a look at those ways so that people with low credit scores make use of these techniques to improve their credit scores.
Ways to improve the credit scores
- Paying the bills and the loans in a stipulated time. If you happen to pay your bills in a stipulated time i.e. before delaying the maturity date then, you sure will not end up having a bad credit score. Make sure that you pay off your bills and debt before the allotted time period, this will save you from low credit scores.
- Another thing is to make sure that you have limited credit. While taking loans one thing that you should keep in mind is that taking multiple loans at a particular time will surely put you in trouble. Make sure that you take the loans in such a way that you are able to pay them back with taking care of your regular expenses. Managing day-to-day expenses along with the EMIs should be plan and figured out beforehand.
- Make sure that you take care of your credit card utilization. The right amount of credit card utilization can be maintained by taking credit as minimum as possible. It is suggested to avoid taking credit close to the sanctioned amount. This will help you to keep the credit utilization rate under check and also in return will help in improving the credit score.
These are the strategies that one can apply to improve the credit score. By improving the credit score one will be able to apply for a loan with banks or any other kind of money lending institution. With a good credit score, one will not have to look or fetch for the option of a bad credit car loans. Improving the credit score will help a person to meet the financial crises with ease by getting the loans easily.