Purchasing A New Car With No Credit Car Loans |
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Lisa Jane Foreman
7 January 2013
According to a report recently released by TransUnion, consumer debt among citizens in the third quarter of 2012 increased at its fastest rate since 2010; this non-mortgage debt reached $26,768, a record high since the credit bureau began tracking the data in 2004. The bulk of this increase, according to the bureau, came from car loans. Auto borrowing debt rose 11.25 percent from the previous year. Statistics also recently revealed that retail sales at new car dealers have jumped 8.1 percent in August 2012 from the previous year.
TransUnion's financial experts attribute the sudden rise in auto purchases to consumer behavior in the country that is influenced by the global recession. During leaner times, Canadians spent the time paying off their leases and refraining from making large purchases, and these actions have driven auto loan rates lower. Now that conditions are significantly better, however, more and more consumers are now realizing that they can purchase the car they've been meaning to get in the previous years, and they are turning to bad credit-car loans or even no credit-car loans to get it done.
In financially challenging times, consumers can succumb to negative money management practices and put their credit rating in jeopardy. Any financial decision can substantially affect your rating: missing bill and credit card payments, closing credit card accounts, settling with lenders on previous past due accounts, and other negative financial activity can harm your credit rating, which is one of the first things a lender will look at when you apply for a loan to purchase a new vehicle. By getting a clear picture of your money habits from your credit history, a lender will know exactly how much risk they will be facing if they decide to approve your loan. A blemished credit history can limit the available opportunities and options.
There are, however, lenders who specifically choose to work with clients with bad or no credit and help them find the best vehicle for their personal needs. These expert brokers can find the car model appropriate to their situation or preference and help them secure a good deal. A bad credit rating will have an impact on the interest rates you can get for a car; but with these professional brokers guiding every step of the purchasing process, you can find yourself taking several steps closer to finalizing a deal and holding the keys to a new or used car.
Not having a personal vehicle to use as you wish for work or recreation can be a substantial inconvenience. Without a reliable means of transportation, you can miss important appointments, fail to show up for commitments, or become generally unable to move from place to place with ease. The situation becomes magnified if you have family members that also need to go around the city or head out to a relaxing vacation every once in a while. Without a car, you stay rooted to a limited range of mobility and experience difficulties in getting where you need to be. It's fortunate, then, that there are professional auto loan specialists who can examine your individual financial situation and find a solution to fix you up with a good auto deal that can put an end to your transportation woes.