A Financing Solution Adapted to Your Situation
Buying a vehicle when your credit isn't perfect is not enjoyable. At Honda de Laval, we understand that credit problems can happen to anyone and our job is to make your life easier. We have helped thousands of customers with poor credit find the perfect new vehicle and even improve their credit over time. If your credit isn't where you would want it to be but you need a vehicle, come visit us today and speak with our experts who will be happy to find the right solution for you. We can help in any of the following situations:
- You have declared bankruptcy in the past
- You have poor credit or no credit
- You have lost your job
- You are new to Canada
- You are a student
- You are self-employed
Visit us today and let’s get you that vehicle you want!
Your Honda de Laval dealer offers its customers car loans at the best rates on the market. Better yet, if you have trouble getting a car loan, we offer 2nd and 3rd chance credit. Our car credit specialists will offer you customized financing solutions for the purchase or lease of your new Honda vehicle.
What are the components of a credit rating?
A credit report gathers several pieces of information on your financial situation. This data allows credit bureaus such as Equifax and TransUnion to know your level of indebtedness and whether or not you are repaying your debts.
Sometimes you have had to accumulate debt to meet financial needs. And even if your financial situation has improved over the past few months, even if you have paid off some of your debts, financial institutions still refuse to give you a car loan. Why is that?
Because financial institutions consult your credit rating as established by the credit bureaus. They analyze all your debts over a period of 5, 6 or even 7 years. The score they give you varies from 300, the worst, to 900, the best.
The 5 factors that credit bureaus and financial institutions use to determine your credit score are the following:
- Your payment history (35% of your score). Whether it's your credit cards, electricity, telephone or cable TV account, any payment that is more than 30 days late is noted on your record.
- Your credit use (30% of your score). For example, using more than 50% of the authorized credit on one of your cards can affect your rating, especially if it is repetitive and even if you pay back the full amount at the end of the month.
- The date you opened your account (15% of your score). The longer you've had a credit account, service subscriptions or line of credit, the better lenders can assess your repayment habits.
- The number of credit applications (10% of your score). The more often you apply for new credit tools, the more likely you are to take on too much debt to repay properly.
- The number of creditors (10% of your score). Too many creditors of the same kind (multiple credit cards) devalue your credit rating.
The causes of bad credit
Many of these factors can work against you when applying for car financing. For example, if you are a recent graduate who is just starting to pay off student loans, you may have deferred payments because of difficulties in finding your first job. A young couple also incurs many expenses to pay rent, buy furniture, move and so many other things!
A separation or divorce may also be the cause of a delicate financial situation that has forced you to "skip" a number of payments.
Finally, you may simply be distracted. This is not an income problem. You just too often forget to pay a cable TV subscription or make the minimum payment on your credit card.
Any of these situations can cause bad credit.
The impact of a bad credit report
The lower your credit score, the harder it will be to get new financing. It will be very difficult to get a line of credit from your financial institution, or a mortgage to buy a house or to rent a home.
Solutions to difficult credit
The team of car financing specialists at Honda de Laval will offer you personalized solutions that will allow you to finance your car purchase or lease at a reasonable cost.
Buying or leasing a Honda vehicle improves your credit rating
A great way to improve your credit rating is to take advantage of the car loan solutions offered by Honda de Laval. This type of in-house financing is called 2nd chance credit and 3rd chance credit. Not only will these solutions make you the proud owner of a new or used Honda vehicle, but they will also demonstrate your ability to pay back your car loan regularly.
Evaluate your credit score online
You can evaluate your credit score for free and in a few minutes on the Honda de Laval website. Go to the Financing section and fill out the form.
Take the road at the wheel of your Honda!
With the help of our specialized car loan financiers, you can easily calculate the auto loan you need. Our customized car financing solutions will give you access to the best possible car loan! It's with a light headedness that you will leave Honda de Laval behind the wheel of your own new Honda vehicle!
