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HOW TO GET A CAR LOAN WITH NO CREDIT
HOW TO GET A CAR LOAN WITH NO CREDIT
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.
OPEN A BANK ACCOUNT
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.
SAVE FOR THE DOWN PAYMENT
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.
PREPARE FINANCIAL DOCUMENTS
Before approaching the dealer for financing, it is essential to put together documentation that shows you are a good investment for the lender. Proof of income, in the form of pay stubs or bank statements, is crucial.
You want to be able to demonstrate to the lender that you have adequate income to make consistent, on-time payments.
Additionally, assemble a few months' worth of utility or phone bill statements if they are in your name. By providing evidence of your commitment to staying current on your financial obligations, you show the lender that you are a great candidate for a loan.
OUR LENDING PARTNERS
Gateway Auto operates in Edmonton, Alberta and extends its services to the neighboring areas including Whitecourt, Sherwood Park, Red Deer, Cold Lake, Bonnyville, Lloydminster, Vermillion, Vegreville, Camrose, and their environs.
