interest rates ...
In the world of finance, charging interest is how the lender is compensated for providing his resources to you, and naturally is his means of making a profit. In a perfect world, rates are low, stable and affordable. However, the rules of supply and demand add to the costs associated with loans and credit and interest rates therefore range depending on the availability or demand for loans, as well as your ability to repay the loan.
What this means is that if you have a poor credit reputation, have never had credit or in other ways represent higher risk to the lender, then the interest rate that you will pay will be higher to offset the potential losses the lender may incur if you default (cannot repay the loan).
If you examine credit card rates, these often range from about 15% for Visa or MasterCard, up to 29% or so for store department cards such as furniture stores. Often there are additional fees applied to late, missed or skipped payments. These are normal rates for those with average or above average credit scores and histories.
For lenders to clients with special financing needs, you can expect to pay higher annual interest rates than clients with average or above average credit scores. Consider that nearly 25% of the Canadian marketplace for car loans fall into this category of special financing.
Circumstances that can contribute to low or below average credit scores are: problem credit, bad credit, no credit, divorced, student, new to country, bankrupt, behind in payments, judgments, unpaid collections, credit counseling or proposal, unpaid family support, or self-employed. We are the car loan problem solvers. Our clients often face poor credit scores; are bad credit risks; or due to life circumstances - such as age, divorce, or others - are facing the uncertainty of obtaining credit for the first time. Are you new to the country and trying to establish credit? Then we may be able to help you.
Apply now for your chance at the lowest rates possible.
A thorough review of your circumstances and your credit score, together with our lenders who are willing to take on below average credit cases, we will try and obtain for you the lowest possible rates. We will often apply to multiple lenders and play them off against each other to ensure we get the best rates. Clients are graded on their credit scores, employment and assets into three rough categories - A, B and C. These have declining scores and naturally represent higher risk to the lender. A typical rate for an A category client may fall between 8-15%, category B between 15-21%, and category C on the other hand may fall between 21-30%. The rates and the categories are unique to each lender and we only discuss this as a way of saying that there is no free lunch and the process of credit repair does have penalties, particularly in the short term.
For a short time period, yes. In 8-18 months, depending on circumstances, and assuming that no payments have been missed and your credit history is otherwise intact, then we can look at placing you into another vehicle - by extending your loan to cover the upgrades, or we can refinance the loan at a lower rate. This is part of the credit repair process and gaining higher category scores will result in significantly lower rates.
You can apply for a loan any time, 24 hours per day. Our Special Finance managers will examine your request as soon as they get notified of your application. We can get you approved as early as the same day or usually within 24 hours of receiving your application during normal business hours.