No Credit Car Loans
Whether you have just turned 18 and applied for your first credit card, or just haven’t started building your credit history in Canada yet, there’s no need to worry about not getting approved for a car loan. Autoloan.ca works with everyone no matter their credit history to ensure they receive the auto loans they need!
Accumulating debt can be a daunting thought when you are just learning about all that it entails, but credit is not something you should be scared of. It is actually extremely important and beneficial to have a credit history, as that will help you down the road when applying for bigger loans like a mortgage or when leasing an apartment. A car loan is a perfect way to start building your credit score as it can be a relatively small loan in comparison to others. As long as you are diligent in making regular, on-time repayments to your loans, you have absolutely nothing to fear! And Autoloan.ca will help you along the way.
Autoloan.ca is here to not only help you get the car that you need but also to help you build your credit history and improve your score.
Building Your Credit
In life, situations will come up where a good credit score is necessary to achieve your goals. This could include applying for that mortgage for the house of your dreams, when transitioning your passion project into a small business, or even when starting a new job as more and more employers are performing credit checks when screening potential hires. All of these circumstances rely on your personal credit history so being able to show banks, lenders and other financial agencies that you are a reliable borrower is immensely important. A positive credit history will definitely aid you in the transition into adulthood or when starting your life in Canada.
What Makes Up Your Credit Score?
When credit bureaus are calculating your credit score, they will take into consideration a mixture of different types of credit. Your payment history or any account information like delinquencies or public records make up 35% of your score. The next highest portion at 30% is the amount you owe on your accounts, with the amount of money you are using on any revolving credit accounts (like a credit card) heavily weighted. 15% of your score is made up by the length of your credit history so getting started on building your credit as soon as you can is important. The final 20% is divided evenly between the mix of the credit account types you have and any new credit you might have acquired.
How A Car Loan Can Help Your Score
As previously mentioned, proving you are a reliable borrower and having a high credit score will help you apply for more credit in the future. However, the fact of the matter is that you need credit in order to obtain more credit. Unfortunately, it can be rather difficult to start building your credit history when all that is easily available to individuals with no credit are small credit card accounts. But that’s why Autoloan.ca services anyone, regardless of if you have credit or not.
When considering what aspects of credit contribute to your overall score, it is easy to see how a no credit car loan can help you achieve a high score. Unlike a revolving credit loan, a no credit car loan is payable in monthly installments over a set amount of time. You will have a set amount you will be required to pay back each month and so ensuring that you make these regular payments on time will show that you are a responsible borrower. You can even pay above the set amount, which will prove to lenders that you are capable of borrowing a higher amount in the future.
Overall, a no credit car loan with Autoloan.ca is an easy and less stressful way to build up your credit history when you are first starting out over other types of loans or lines of credit. Not only do we want to help you get that car you need, but we want to give you the chance to build your credit too!