Are you in need of a car, but lack credit history? While some people may simply march into a dealership and announce that they would like to purchase a car but have no credit, this is not a recommended approach. A little advance planning and preparation can help you get a car loan with no credit.
One of the first and easiest steps to establishing credit is to acquire a bank account. If you do not currently have one, open an account prior to attempting to acquire vehicle financing. A checking account is the best choice of account type to open since it will make it easy for you to make payments once you have your car loan.
While it may seem counterintuitive to save money for a down payment if you wish to finance the purchase, having a down payment may make you a more attractive borrower if you lack credit history. Lenders like to see that borrowers have discipline with their money. Your ability to put aside a sizeable down payment can reflect positively on you.
Before approaching the dealer for financing, put together documentation showing that you are a good investment for the lender. Proof of income in the form of pay stubs or bank statements is essential. You want to be able to show the lender that you have adequate income to your ability to make consistent on time payments.
Assemble a few months’ utility or phone bill statements if they are in your name. By providing proof of your commitment to stay current on your financial obligations, you show the lender that you are a great candidate for a loan.
While it can be a challenge to get a car loan with no credit, it is definitely possible. With a little effort on your part, you will be on driving that financed car soon.
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S.A.S.S. Auto Group is located in Guelph, Ontario and also serves Kitchener, Waterloo, Cambridge, Milton, Brantford, Hamilton, Fergus, Elora, Puslinch and surrounding areas.
50 Malcolm Road A, Guelph, Ontario N1K 1A9
Tel. No.: 519.822.2277 519.822.CARS (2277)