Any person will want to purchase a car at some point in their lives. However, some Canadians don’t have the resources to pay for a car upfront, causing them to consider financing. Another problem is that many don’t have a credit card, begging the question, “Can you finance a car without a credit card”?
How will the lender decide whether or not to approve a loan? If you are in a similar position, you will find the necessary information and answers to your questions in this post.
Is It Possible to Finance a Car Without a Credit Card?
Yes, it is possible to buy a car with no credit history. However, the process involves a few extra steps compared to applying for auto loans with a credit card. If you don’t have a credit history, you will want to follow the steps below.
Step 1: Provide Documents to Prove Your Creditworthiness
Since you don’t have a credit score to establish credit or report to show the lender, you will have to gather other documents such as proof of employment, living history, or bill payments to prove your credibility.
Step 2: Use a Co-Signer
Another thing you can do is ask a family member or close friend to step in and act as a co-signer to improve your chances of getting the finances you need to purchase your dream car. It will benefit your case if the co-signer has a high credit score.
Step 3: Start Building Credit
While it is possible to finance a car without a credit card, it doesn’t mean that you shouldn’t apply for a card and establish a credit score. Start by making small purchases with the card, including gas or grocery shopping, to increase your chances of loan approval. Don’t forget to make payments on time and settle your monthly bills.
Step 4: Make a Down Payment
Another way to improve your chances of getting a car loan is to make a down payment. One of the reasons this helps is that you are asking for less money by making a small down payment. The less you need, the more comfortable the lender will feel giving you funds.
Step 5: Select the Right Company
Working with a reliable company has numerous benefits. When choosing a lender, choose one committed to helping you get the car of your dreams without high-interest rates or hidden fees. You need a company that considers the big picture when reviewing your car financing needs and the lack of a credit card.
Partner with Get Approved Canada
At Get Approved Canada, we can show you how to finance a car without a credit card and offer excellent conditions for all potential borrowers. We dedicate ourselves to helping you get the vehicle you want without getting stuck with high-interest rates or payments. All you need to do is apply online, provide the necessary information, and get funding the same day.
For more information, don’t hesitate to call us.