Finance Resources

Let’s talk about credit. It really doesn’t have to be scary or confusing!

Understand your credit score

A credit score is a three-digit number based on the information in your credit report. Credit bureaus don’t release the exact math behind this number, but what we do know is that your credit score increases when you can demonstrate that you use credit responsibly (paying bills on time) and that your credit score decreases when you show that you have difficulty managing credit (a bill is paid late or goes to collections). Your credit score, also known as a FICO score, is used to tell a lender the likelihood that you’ll be able to pay back the money they’re lending. It’s up to each lender to decide the lowest credit score they feel comfortable with and will likely use this score to set an interest rate and a credit limit. The higher the score, the lower the interest rate, because, generally speaking, the risk for the lender is lower. In Canada, credit scores range from 300 to 900, with the best being 900. Credit scores change every time your credit report is updated.

Anatomy of a Credit Score

As we’ve mentioned, the exact math equation that creates a credit score is unknown, but we do know that it is based on the information in your credit report, which is then compared to millions of other people’s information.   The median FICO score is 720 out of a possible 900. The riskiest customers have scores below 600. Higher scores are better and translate to lower interest rates.

Ways to improve your credit score:

Consolidating debt, like using your line of credit to pay off credit cards is one way to improve your credit score if you have debt in multiple areas. Another way to improve your score is by building up your responsible use of credit. In fact, 78% of borrowers see their FICO score increase 3 months after getting a loan. On average, this increase is 23 points!

Car Loan Companies offer great deals online for the individual who wants to benefit from the advantages that leasing provides over buying. Leasing a car is less expensive than buying when considering the amount of a monthly payment. Many drivers opt to lease over buying because they like to drive a new and more expensive car. After the loan period runs out after 2, 3, or even possibly 4 years, they can just trade it in for a new model or a totally different vehicle of their choice. Car loan companies do require that the vehicle be kept in good running condition with reasonable mileage. At the end of the loan the person renting has the choice of purchasing the automobile if so desired. Credit requirements for leasing a vehicle are strict compared to buying. Car loan companies view someone who has a higher credit score as a more responsible person who will probably make payments on time and not abuse the vehicle. Before opting to lease an automobile get a copy of your credit reports from the two major credit bureaus “Equifax.ca & TransUnion.ca” and look over the reports for errors. Correcting negative information can help to raise credit scores. This can be done by filling out a dispute form or writing a letter to the bureau where the error exists, visit their website for more details or instructions. The credit bureau will investigate the dispute and answer back. If the creditor of the account in question does not answer within the 30 days the item should be removed from the credit report. Follow up is very important with disputes in order to make sure that the corrections are made. Mileage limitations and disposition fees are usually associated with leasing. Going over the mileage noted in the agreement will mean paying so many cents per mile in fees when it is time to turn the car in. Car loan companies are usually very strict about the mileage requirements and limitations because the higher mileage makes the value of the vehicle less. Companies who lease vehicles may verbally suggest that the mileage fees are negotiable. If this is true the contract should reflect that. A disposition fee is charged to the driver who does not opt to purchase the automobile once the agreement is complete.

Applying for Auto Loans is second only to purchasing a home. Buying a car is the biggest and most important purchase we make. There is more involved in buying a car than most first-time buyers will suspect. Beyond the make and model of the car, there is loan financing that must be taken into consideration. Getting a loan for a vehicle is much easier today than is used to be, although there are many pitfalls that you should take into consideration beforehand.

How Big of a Loan Can You Afford?

Use our Loan Calculator to see how big of a loan you can afford. Our loan calculator is an easy way to determine what size of monthly payments you can make and over how longer of a period you will be paying them. At this stage, it is important to already have in mind a monthly budget.

Automotive Loans

Used Auto Loan, in partnership with multiple lending companies, can offer nearly everyone a loan. To determine if you qualify, use our online application form to see if you qualify. The form takes several minutes to complete, and in 48 hours or less we will contact you regarding your status. In the meantime, you can sit back and relax, knowing that there is a team of people working hard to qualify you for a loan.

Who Qualifies?

While most car dealerships have difficulty offering auto loans, we are able to successfully offer loans to 95% of the people who apply. We can do this because, unlike most dealerships, we coordinate with multiple lenders to give you the best loan possible. If you meet any of the following criteria, you might still qualify for a loan:

• Bad Credit
• No Credit
• Student
• Bankruptcy
• Divorced
• Pension
• Fixed Income

0% car financing is when you can purchase a car and make monthly payments on it without having to pay any interest. As you can imagine, it is a tempting offer that seems too good to be true. Unfortunately, is usually is. There are many pitfalls to 0% financing that you should be made aware. Let’s take a look at a few of them.

0% car financing, what is it?

This is where you’ll see the dealership offer 0% financing or up to a $10,000 cash back offer. When you crunch the numbers, it turns out that the cash back offer normally saves you money. As of today, Ford.ca offers a 0% financing deal or about $7,000 in price adjustments.

0% Financing for Used Cars

Because you are not paying interest, the dealerships will give you a shorter repayment period of somewhere between 36 and 48 months. This means that you’ll have much higher monthly payments than you otherwise would with a 60 month loan or longer. If you bought a pre-owned vehicle with about 4.95% loan, you would actually end up paying less for your vehicle than with 0% financing plan.

Auto Financing London Ontario

The most important thing to remember is that, in the end, it comes down to what you can afford to pay per month. Most people will not be able to afford a 0% financing deal and so must opt for a loan. This isn’t a bad thing and shouldn’t be discouraged. Regardless, 0% financing is a fading trend and may not be around in five more years. In the end, your best option is to first Apply for a Loan using our Online Car Loan Application to get pre-approved quickly. Now you know in advance exactly how much you can afford to pay and what type of car you want to purchase or at least qualify for.

Low interest rate auto loans are very attractive for people in the market for a used vehicle. A low interest rate auto loan could make the difference between an affordable monthly payment and one that is simply out of reach. Some people looking to buy a vehicle find that shopping around for the lowest rate allows them to buy a nicer and more reliable car. Loans can also be advantageous for people who already have cars. Auto refinancing is becoming a very popular means of financial management for Canadians. So even if wanting to keep one’s current car, refinancing can save money on monthly payments and save interest on the overall life of the account. Some local newspapers publish the terms of alongside mortgage rate information. The borrower can also contact financing representatives from local banks or credit unions and ask for their rates to help get an idea. More financing information can be found through Internet search. Many Web sites offer instant information on such financing. On some sites the system will provide the best low interest rate auto loan for a each area. Of course, there is no limit to local options when seeking a bank to finance a vehicle. Many Internet sites provide loan calculators so that borrowers can easily determine how much they can afford and how the difference between a low interest rate auto loan and a higher one will affect the monthly payments. Rates in Ontario are significantly influenced by this score.

Auto Financing Loans offered by many Used Car Dealerships, which improves the chances of getting a good interest rate. Transportation is a necessity for every family, and usually it means more than one vehicle. The choice between buying a new or Used Car, or buying out a lease gives the customer many ways to handle the Car Financing Loan. Unlike the old days when a person was completely at the mercy of the dealer, today’s buyer can arrange financing online by shopping among several different lenders. Financing Cars Online Whether Applying Online or at the dealership, the same steps apply. The lender will check out your credit first, and with that information they will decide whether or not to grant you any financing loans and at what interest rate. The worse the credit rating, the higher the interest rate. If it’s a used car, they will want to check the title and the vehicle’s history for any liens before lending money for that vehicle. The history should be important to the buyer as well. No matter if financing is for a new or used car, comparing the terms is simpler than it used to be. The only thing someone can’t do online is actually drive the vehicle. A person can see pictures of it before getting the financing loan, but that isn’t quite the same as touching the upholstery and getting a whiff of that new car smell. Auto Financing Online Ontario After a decision has been made on the make and model, check out the options available, and decide on their importance before actually obtaining financing. Air conditioning and heating are standard these days, but there might be the option of vents in the back as well as the front of the vehicle. A large trunk may be important, or safety locks for children. For some, color is paramount before applying. The choices are many. To sum it up, car financing loans are available both on and off line from dealers and under terms suited to your budget.

Car Loan Application can be a very easy process. Financial lenders assure the likelihood of getting a reasonable deal. Many customers do not shop around for favorable terms and simply look to their car dealership for loan information, online loan rates are generally lower than those found at brick and mortar dealerships. Individuals with bad credit are not usually excluded from having their car loan application accepted. Those with credit problems can still rely on us to locate financing companies which are willing to work with them to get the best possible deal for their current financial and credit situations. There are quite a number of people who are in that credit situation, fewer than 7% of buyers qualify for the special 0% or low interest offers which car commercials often feature. Many people buy a more luxurious vehicle than they can really afford, just to impress others or increase their own self-esteem, only to find out in a short time that they can not keep up with the payments. Needless to say, having a repossession on one’s record does not reflect positively in the future car loan application or credit score! There are loan products available for these individuals like job loss, gap insurance or even Life & disability Insurance, and we specialize in working hard to help a person who has a poor credit rating to get you back on track by rebuilding your credit if you maintain your payments in a timely fashion.

If you are in need of financing to purchase a vehicle, That Car Place can help you.

• If you have had credit problems or have never had credit, call us now at (866) 969 1999 or Apply Online
• If you have been or are involved in bankruptcy and need financing to purchase a vehicle, call us now at (866) 969 1999 or Apply Online.
• If you have been rejected by any major banks, Chrysler Credit, General Motors Credit or any other financial institution, call us at (866) 969 1999 or Apply Online.
• If you need a lease paid out which is through the manufacturers own financing branch and can’t get them to finance it, call us now at (866) 969 1999 or Apply Online.

If you need a lease paid out which is through the manufacturers own financing branch and can’t get them to finance it, call us now at (866) 969 1999 or Apply Online. Buying a new vehicle is always exciting. Because it’s a significant financial commitment, it can also be a little stressful. That Car Place will help reduce that stress by working hard to find the right financing and help you get behind the wheel of your next vehicle…quickly and easily. That Car Place offers the convenience of on-the-spot financing, which means all of the arrangements can be taken care of at the dealership. And here are some other benefits of doing business with That Car Place: Competitive retail interest rates and flexible financing terms with open end loans and to top it all up excellent service from our auto finance specialists Superior service and support from our Service Centre even after the delivery to service your needs today and in the future, with our very low shop rate and qualified and informative service advisors, rest assured you are in good hands.

That Car Place is able to provide a product which allows people with bad credit or no credit with the ability to rebuild their credit in 10 payments. We are able to lead you through this process and get a car loan approved in no time. It is likely that many customers do not know if they are needing this type of loan. All you need to do is fill out our credit application and allow us to get you approved. Once we have the information required to process your application, our finance managers will select the best product for your individual situation. Once you are approved, we will work with you to select a vehicle. All you need to do from this point on is to make 10 payments, on time, and you are on your way. The second part of this process occurs after the 10 payments. Once you have succeeded in making the on time payments, you are able to purchase a second vehicle, while using your first as the trade in. This will enable you to decrease the rate of interest paid on the new loan and solidify the fact that you are now in a second approved loan. This will further help rebuild your credit and allow you to seek further credit. You are now on your feet again!

Sub-Prime Car Loans Second Chance Credit means exactly what the name says. It is the opportunity to access credit for a car loan and to reclaim your financial security irrespective of previous history. At That Car Place, everybody gets a second chance! If you consider yourself to be in one of the following situations, then That Car Place’s Credit and Loan Department is for you: No Credit,Bad Credit, Bankruptcy, Proposal, Late Payments, Poor Credit etc… We can help you rebuild your credit scores starting today! Every person has had a different credit situation and for every different credit situation, a different credit score. That Car Place has the ability to get you approved for your car loan now. We have Credit managers that have years in experience in dealing with problem credit. We understand that most people face financial challenges at one point in their lives or another. By understanding the changing dynamics within the credit market and the lenders requirements as well, we are able to build a case based on current circumstances that will lead to a car loan APPROVAL right away. We convert 32% of all of our Sub-Prime customers to Prime customers within 18 months. This means that we are able to move you to a lesser interest rate on your loan! It also means that you are on your way to rebuilding your credit score, allowing you easier access to other types of loans and credit. Our Car Loan Credit Managers don’t stop working with you once you have been approved and chosen a car. They maintain contact with you so that we can get you into a better rate car loan in the future. Rebuild you’re credit quickly with our help! We have developed our system to maintain a relationship with our customers so that we can move their sub-prime loan to a prime loan.

What does this do for you?

It is the first indication to other lenders that you have begun the process of rebuilding your credit and therefore your credit score. It allows you to replace and purchase another vehicle at a lower interest rate.