How to Get a Car With No Credit History in Canada

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It isn’t easy to get credit without a credit history. This is because most lenders prefer to offer loans to borrowers with a history of paying their debts on time. However, having no credit score doesn’t mean that it’s impossible to get a car loan or that you have bad credit. Besides, most Canadians have blank credit reports. So, if you’re looking to get a car loan with no credit history in Canada, there is no need to worry.

Tips to Help You Get an Auto Loan With No Credit History

Major credit bureaus in Canada, such as TransUnion and Equifax, only create credit reports based on two-year activity. If you have no credit score or history, here are a few tips to help you get a car loan in Canada:

Organize Your Documents

Since you have no credit report, lenders examine other factors to determine your creditworthiness. This can include your living history to see if you were able to pay your rental costs, your employment history, to see proof of consistent income, your driving history, and bill payments to confirm your payment history. Lenders may also pull information from your bank accounts to see how you manage your money.

Consider Using a Co-signer

Consider finding a co-signer with a good credit score to increase your chances of getting the auto loan. Finding a family or friend with a good credit rating can give lenders confidence in giving you the loan because they can hold them accountable in case you’re unable to pay. You and the co-signer must understand the risks involved if you fail to pay the loan.

Consider Making a Down Payment

The less money you need from a lender, the better your chances of getting the loan. This is because you’ll owe the lender a lesser amount, which you’ll probably pay in a short period of time. So, the better if you can make a down payment, regardless of the amount.

Improve Your Credit Rating

If you plan to get an auto loan in a few months, consider signing up for a credit card that can help you establish a good credit score. You can also work with providers who specialize in building credit ratings through a personal loan. Consistent use of credit can help you get a good credit score, improving your eligibility for the loan. Consider asking for your own credit report from the various credit bureaus to help you constantly monitor it.

Contact DriveNation Today!

DriveNation is here to help you get a car loan, despite your credit file. Here, you get access to over 20 lenders that offer loans at fantastic interest rates. More so, they have credit-building programs to help you improve your credit rating, making your loan application successful. So, if you’re in Canada and looking to get a car loan with no credit history, please don’t hesitate to contact DriveNation today!

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About DriveNation

We are about always putting our customers’ needs first, DriveNation is committed to getting all of our customers approved for financing and driving a quality used car, used truck, or used SUV.

We have a team of auto finance specialists that will work hard to make sure you get the best interest rate your credit will allow. Our promise to you is that if you have questions about our services we will do our very best to make your experience with us as easy and as rewarding as possible. Expect full transparency, great customer service, and a vehicle you can count on.

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