It’s hard to get approved for a car loan with no credit history. Having a previous credit record can help lenders determine whether or not you’re able to pay back the borrowed money on time. Find My Auto specializes in helping you get approved for a vehicle loan with little to no credit history. Having no credit history doesn’t mean you can’t get approved for an auto loan. It’s common to have a blank credit report. 1 out of every 10 Canadians don’t have any credit history. If you’re one of them and want to get approved for a car loan in Canada, here is what you should do:
In case you have an inactive or no credit history at all, it’s time to organize your documents and show your lender that you are a financially responsible individual. Lenders might want to pull information from your bank accounts to evaluate your financial situation. Get your financial information ready: your employment history, utility receipts, past residencies, etc. These documents will help you convince your lender that you are good at managing your financial matters.
You may need a cosigner
It is understandable that not everyone can manage to obtain a cosigner. However, having a friend or relative cosign will drastically improve your chances of getting approved for an auto loan. This also helps in starting to build up your own credit. Try to find a person with excellent credit to be your co-signer. By doing so, you will make your lender feel more confident about approving your car loan. It is important to understand that your co-signer will be responsible in case you’re unable to pay off your debt.
Build your credit history
If you have never applied for or purchased a vehicle before, it can be difficult to get approved. A credit report helps lenders understand installment and revolving credit.
Start building your credit history so that you can show your ability to manage money and loans. Getting a credit card is a good way to develop a good credit score by making timely payments. You can also consult a lender who specializes in credit building through personal loans. Responsible and consistent use of credit is enough to prove that you’re capable of handling a car loan. Again, you don’t necessarily need to have a credit score in order to qualify.
Find My Auto is ready to help you get approved
Are you ready to get approved for a car loan with no credit? Find My Auto can assist you in obtaining a fast no-credit approval no matter your financial situation. We offer an easy stress-free online process to apply. Fill out our simple application form to get started!