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How to buy a car in Woodstock with no credit

How to buy a car in Woodstock with no credit

If you have stumble upon this article, you are probably frustrated seeing all of the different resources dedicated to car buyers with good and/or bad credit. No one is talking about how to buy a car in Canada with no credit.

That’s why our Woodstock auto loans team rolled up our sleeves to show you what options are available when you don’t have credit.

Reasons why you don’t have a credit score

Just about everyone in Canada has a credit score, if you are using a cellphone, you may have purchased a phone line and received a “free” cellphone.

If you do not make your payments on time, the phone company will send your account to collections and that will hurt your credit score.

On the flip side, if you pay your bills on time, your credit score will climb.

The only valid reason why you would not have a credit score is because you are just out of high school or a new Canadian, in either car not having credit will not prevent you from realizing your dream of owning a car.

Having the right expectation

You need to set the right expectation before you start looking for car. Since you do not have an established credit score, you will need to deal with lenders that provide car loans to borrowers like you.

There are more risks associated with giving a loan to someone with no credit than an individual with a high credit score. These lenders will levy a higher interest rate to mitigate their risk.

The interest rate that you pay impacts the total amount of money you can borrow for the new car. Since these lenders are going to charge you a higher rate, you may have to select a car that is not as expensive.

Building your credit score fast

While you may not have a credit score now, you should seize this opportunity to build it up as quickly as possible.

You can apply for a secured credit card from companies like Capital One or HomeTrust.

When you get your card, you can start using it and making your payments on time. After a few months, your credit score will shoot up very fast.

Finding the right car and Woodstock car loan provider

If you need a car today and can’t wait for your credit score to improve. You should consider heading to a car dealership.

The dealership has an inventory of cars that you can actually drive. There is a chronic shortage of new and used cars in Canada, so don’t be surprised if there are not many cars available.

The dealership has access to lenders to meet the borrowing needs of all their customers, including borrowers like you with no credit.

The prospective lender does not have a credit score to determine whether you are a good risk. These lenders will look at your current income and debt and if you have a large amount of debt or are in a relatively new job, the lender may ask for a cosigner.

A cosigner is someone with good credit that promises to repay the borrower should you default on the loan.

You can buy a car with no credit but you will have a much easier time, if you start building your credit today.

We will use all our skill and experience to deliver the lowest possible Woodstock auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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