Our Canadian customers often want to know some of the basic requirements for obtaining a bad credit car loan if they have tarnished credit.
Canadian Bad Credit Car Loans
Here at Auto Credit Express, we want you to know that there are a number of things to consider if you live in one of the provinces of Canada and want to reestablish your credit with a Canadian bad credit car loan. Among the most important things to consider is income, bankruptcy, prior repossessions and age requirements. All four items are based on Canadian bad credit car loan laws and the Bankruptcy and Insolvency Act (BIA).
You must have at least $1,800 per month gross income (that is, your income before taxes) for Beacon scores (that is, your credit score) less than 525. Even with a credit score that is higher than 525, the monthly gross income has to be sufficient enough so that you can afford both the car payment and full coverage insurance. If you are self employed, the situation gets more complicated. You will need to prove income from the previous three years with tax statements that have been professionally prepared. In some instances, lenders will also require you to furnish bank records in addition to tax statements.
In most cases, your bankruptcy will need to be discharged before any subprime lender will consider approving your loan application.
There are two types of repossessions – voluntary and involuntary. A voluntary repossession results when you contact the lender and return the vehicle to a place designated by the lender (such as a car dealership or storage lot). An involuntary repossession is when the lender comes and picks up the car. The advantage to the voluntary repossession is that you can avoid certain repossession fees. In any case, both types appear on your credit report as a repossession.
In order to qualify for a bad credit car loan, you cannot have a repossession within one year of your loan application, unless the repossession was included in a bankruptcy.
You must be at least 18 years old in order to apply for a loan.
Other questions regarding Canadian Bad Credit Car Loans Laws
These are the requirements that all lenders require for bad credit car loans. (Individual requirements may vary such as time on the job, time at residence, etc). If you have any additional questions, please visit our web site at www.autocreditexpress.com. There you will find additional information on Canadian bad credit loans as well as an application that you can fill out in the privacy of your home. At Auto Credit Express, we have helped thousands of people with bad credit get a new car and reestablish their credit at the same time. If this is your situation, we look forward to helping you out.