How to Get a Car Loan With No Credit in Calgary, Red Deer and Surrounding Areas
Getting a car loan with no credit may be difficult, but it's not impossible. If you have been struggling to get a loan due to your credit history- or lack thereof- then we at Car Max Canada can help you. When you lack credit history, there are a few things you can do that shows your commitment to buying a used car. When lenders can verify that you are able to pay your debts, your chances of receiving help greatly improve.
Down Payments & Documentation
Saving up money for a down payment is one of the most obvious steps you should take before trying to get a used car loan. Since you have no history to prove that you have the ability to pay off your obligations, the more money you save up shows how serious you are as a buyer. If you plan on investing your money into a down payment, it would be wise to open a bank account. Although a standard bank account does not improve or diminish your credit, you can still show dealerships your bank statements as proof that you will be able to pay. In addition to opening a bank account to provide financial information, you can bring documentation of any recurring expense such as utility or phone bill. Lastly, having a steady source of income is important when it comes to getting a car loan with no credit.
Another option would be a friend or family member that could co-sign on a loan. However, exercise caution if your consider having a co-signer help you. A missed or late payment on your behalf means that whomever was your co-signer has to pay and it may damage their credit. If getting a car loan with no credit has been difficult in the past, look no further. Follow the advice above and consult Car Max Canada to finance your loan for a used vehicle.
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Car Max Canada is located in Calgary, Alberta and also serves Red Deer, Lethbridge, Grand Prairie, Fort McMurray, Medicine Hat, Airdrie, Cochrane, Okotoks and Strathmore.