Second Chance Credit Financing FAQs

December 06 2022 -

It's Monday morning, you walk out to your car about to head to work, you turn the ignition and... Nothing. You pop the hood but nothing seems to be off. You pull out the jumper cables, but that doesn't help. You call the tow truck and wait a few hours, all after having notified your boss that you will be late. The tow truck arrives, brings your vehicle to a nearby dealership who, later that day, informs you that they found the problem, but it will cost you $4,000 to repair.

This is the third time this year that your car has let you down, and although you could repair it, chances are more problems are on the horizon. It's time for a new vehicle. The problem is that your credit isn't as good as you would like. You have gotten your budget back on track and you have a steady paycheck, but your credit score hasn't caught up yet. You may be wondering what your options are.

Well, first, know that you do have some options. One of which is a second chance financing loan, something we specialize here. We have helped customers from all over New Minas and Kentville, Nova Scotia, buy a vehicle to replace their current model or buy their first vehicle despite their credit score, and we can help you too. But first, we want you to better understand what second chance financing is, because there is a lot of information out there.

What is second chance financing?

Second chance credit financing is for buyers with poor credit who need a vehicle. A bad credit score can be caused by a variety of factors, such as a sudden job loss, illness, divorce, or the pandemic. A bad credit score can hinder your ability to obtain a loan with conventional terms. That's when a second chance car loan is useful.

Is the interest rate on second chance credit financing plans higher?

Yes, second chance credit financing carries a higher rate of interest than a conventional loan. In contrast, the rate is not 20% or 30%, as you may have heard. Obtaining a loan with an interest rate of less than 10% is achievable, although rates can vary from buyer to buyer.

Are second chance credit financing loans longer to repay?

The length of your loan will depend on how much you want to pay per month, which is turn will vary based on your monthly income. Before you sign, our team here in New Minas will work with you to ensure that the loan meets your needs and that you are fully informed about the terms.

Will obtaining a second chance credit financing loan affect my credit score?

Over time, the second chance credit loan might enhance your credit. If you are unable to obtain a conventional loan, your credit cannot improve. If you obtain a second chance loan, you have the opportunity to rebuild your credit by demonstrating that you can meet your financial obligations.

Can I improve my second chance credit financing car loan terms?

Yes, if your financial situation improves, our team will be able to work with you to get a better loan that reflects your improved credit. Contact us today to learn more, or visit us at our location in New Minas.

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