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How You Can Get Approved for a Car Loan if You Have Bad Credit

If you have bad credit, then you can rest assured that you are not alone. It is estimated that 25 percent of people have a credit score that is under 620. It is still possible for you to get a car loan if your credit score is low. There are several things that you will need to do before you apply for a bad credit vehicle loan.

Know Your Credit Score

It is a good idea to check your credit score before you get a loan. Your credit score not only affects your chances of getting approved, but it can also affect the interest rate. Make sure that you have any errors corrected. One error can cause your credit score to drop by several points.

Research

You should also do your research before you apply for a loan. The annual percentage rate is one of the things that you will need to look at before you apply for a loan.

Pre-Qualify

It will be a lot easier for you to get a loan if you are pre-qualified. You can get pre-qualified through a bank or credit union. It is important to note that there are differences between a bank and a credit union.

Banks are for-profit organizations. They are designed to make money. That is why if you are less likely to get approved for a loan if you apply through a bank. The interest rates will also be a lot higher.

Credit unions are non-profit organizations. You will have to be a member of a certain organization in order to join a credit union. However, it is easier to get approved for a loan through a credit union. The interest rates are also lower.

If you are interested in applying for a bad credit vehicle loan, then you will need to contact Canada Auto Experts at www.canadauto.ca.