Here are 3 common mistakes that people make when trying to obtain a car loan:

1.  Applying for an auto loan at several companies may seem wise but it’s important to deal with a company that is reputable and handles your credit application responsibly. A lot of places generate several unnecessary credit inquiries through themselves and their affiliates without regard for their clients’ already poor credit, and making it even worse.

2.  Some websites are simply designed to obtain your your information just so that they can sell it for profit to other companies in order to sell you stuff or worse steal your identity to commit fraud against you.

3.  A lot of people that have poor credit or had a bankruptcy or consumer proposal have unrealistic expectations about the car they want versus the car that they should get.  It is important to be reasonable and get a vehicle that will minimize your insurance costs so that you don’t fall into the same pattern that got you here in the first place.

Avoid these 3 common mistakes you will be on your way to rebuilding your credit.

GAP Insurance is also known as Guaranteed Auto Protection (GAP) within the Canadian and U.S. car loans industry. GAP insurance covers the difference between the actual wholesale value of a vehicle and the balance still owed on the auto loan, which must be paid in full right away or rolled over into a new car loan.  Sometimes GAP insurance is a requirement for a car loan but that depends on the actual customer and the downpayment provided for the car loan.  At CA Lending®  we highly recommend GAP insurance seeing first hand the thousands of dollars it’s saved for our customers.  Protect your auto loan, buy GAP!  Apply Today and get Approved!

Getting a car loan from CA Lending® now would be the best and quickest way to drastically improve your overall credit score.  For example if you wait a year without obtaining any new lending products (eg. Auto loan, VISA, MasterCard, etc.) then lenders have nothing to rate you on except your most recent credit, which is a year old and poor.  Lenders are more interested in your borrowing and payment habits for the last 12 months when making lending decisions.  So although the cost of obtaining a car loan now may be great, the cost of not obtaining a car loan now will be substantially greater.  Apply Today and get Approved!

After getting approved for a car loan, a lot of people ask, “Is it better to buy a foreign car or domestic?  Our answer is always, “Whatever car makes you happy.” Although you can have any car you want, after getting approved for your auto loan, lenders do tend to provide more favourable car loan terms and interest rates to those individuals who choose a newer, domestic vehicle with with low kilometers and therefore still under the original manufacturers warranty.  The reason for this is simple, if you choose an older vehicle with higher kilometers the chances of it breaking down are greater, creating repair costs that may be a tremendous burden.  Something to think about…

Getting a car loan is the best possible way to get your credit back in good standing but it is definitely not the only way.  The following is a comprehensive guide to rebuild your credit in as little as 10 months.

Step #1:  Get approved for an affordable auto loan at CA Lending® and make 20 bi-weekly payments towards your car loan.

Step #2:  After 6 bi-weekly payments have been made, apply for a VISA® or MasterCard® from either TD®, RBC®, Scotiabank®, BMO®, or CIBC®.

Step #3:  Use your new VISA® or MasterCard® for basic purchases like gas or groceries.  Make sure that your monthly purchases do not exceed 75% of       your credit limit.  For example, if your credit limit is $1000, your monthly purchases should not exceed $750.

Step #4:  Self control.  It’s easy to want to splurge a little with your new credit card but remember, that what got us in trouble in the first place.

If you follow these four basic steps then you will be on the road to getting your credit back on track in no time.  Apply Today and get Approved!