Credit dictates many of the decisions that we make financially and a bad or no credit can greatly influence many elements of our lives. Buying a new car, buying a home or simply getting a credit card all require that you have a tangible credit score and quality credit history, and building your credit up from zero can be a significant hurdle to overcome. At Amherst Toyota, we want to share with you our strategy on how to get a car loan with no credit in Amherst, NS, so you can take that next step towards building credit and get behind the wheel of a new vehicle.
Maybe you recently graduated high school or college. Maybe you just haven’t worked to establish your credit score.Whatever reason, one of the first steps you should take when you want to get a car loan with no credit is to start saving. Build up your checking or savings account, so that you have enough money for a significant down payment. The larger your down payment is, the more likely a lender is to give you a loan and the more affordable those monthly payments will be. Putting a sizeable down payment on the new 2015 Toyota Tacoma that caught your eye is one way of showing dealerships that you are serious about building your credit with a new car loan.
What Do You Need to Get Approved for a Car Loan?
After you have saved up for a down payment on your new car you will need to get pre-approved for a car loan. Going to a money lender can be an intimidating process, but if you have all of your ducks in a row and a substantial savings account it can be a rewarding and informational process. Before you head to your local lender it is important that you have the appropriate documents that will show that you are financially responsible enough and prepared to afford monthly car loan payments.
You will need three forms of documentation in addition to your credit history when you go to your money lender. Bring with you, a copy of your bank statement to show your financial history, documentation that demonstrates your payment of recurring bills (a phone or utilities bill) and proof of employment, such as a check stub. All of these documents will be necessary to get pre-approved for a car loan and get on the road towards establishing your credit.
Get a Cosigner
Getting a cosigner for your car loan will go a long ways towards receiving a quality car loan and building your credit score from the ground up. A cosigner is a financially responsible and trusted individual that will help you take on the responsibility of your car loan. Finding a cosigner is an important and serious process, because if you are unable to make on-time loan payments, the financial responsibility of the loan falls on your cosigner.
By saving up for a significant down payment, having the necessary paperwork in order and finding a responsible cosigner you will be ready to get pre-approved for a car loan and start building a quality credit score. If you are looking for a new vehicle, simply follow our tips on how to get a car loan with no credit in Amherst, NSand you will be behind the wheel of a new car before you know it.
- Published: 2016-08-22