When it comes to getting car loans in Canada, it’s important to check your credit report to be sure where you stand and how you should prepare to improve your chances of getting approved. While it can sometimes be difficult to get an auto loan with poor credit, having no history can be even more stressful. Whatever the case, it’s important to understand that you can still get approved for a car loan with no credit history or score. There are a lot of Canadians who don’t have any credit history. Let’s get down to why you don’t have a credit score.
How a credit score is determined
First of all, develop an understanding of how the credit score is calculated and how you can start building a credit score. Numerical summary of information in your credit report is what makes your score. Why do you need a credit score in order to easily get approved for a car loan? Lenders use your score to determine your creditworthiness or your ability to pay off debt on time. People who repay their credit obligations on time have a promising credit score which makes it easy for them to get loans in the future.
Why you don’t have a credit score yet
The credit score is determined using the information in a person’s credit report which consists of records of loans, credit cards, lawsuit judgments, debt collection record, etc. If you haven’t used any credit products or built up any credit yet, how would you have a credit history? Even if you recently signed up for a credit card or any other product, you won’t have a credit score yet because you’re still in the initial stage and it will take some time to create considerable history.
You probably need to wait and keep paying your debts on time in order to retrieve a positive credit score. Signing up for a credit product like a credit card is a good way to start building your credit. Considering you are a person who manages their finances wisely.
You might have several financial accounts that you haven’t used for a considerable period of time. If this is the case, you wouldn’t have a score even if you have a credit history. This is the case if you have inactive accounts for a certain period of time. Start using your accounts again to help build up credit. If you have bad credit, learn how to improve it.
Build your credit score
In order to establish a score, you can start with considering a few credit card options such as a student credit card, a secured credit card, a joint credit card, or a retail credit card. After signing up for an account, learn how to manage credit effectively.
About Find My Auto
Find My Auto is an excellent place to start when considering to build up credit. We provide auto loans to people with all kinds of financial situations. Contact us should you any questions. If you’re ready to get a no credit history car loan, fill out our simple application now!