Canadians, assemble! Are you someone who wants to obtain car financing but has no solid credit history?
A lack of credit history can be due to many reasons - maybe you’re an immigrant, or maybe you just didn’t like debt until now. Whatever your season might be, it can be a rather difficult task, obtaining a car loan without a credit check.
Most lenders are a little hesitant approving loans of individuals with no credit background; which makes sense. They have no way of knowing if you even have the capability of repaying the loan.
It’s not easy to finance a car with no credit check.
But that doesn’t mean that you can’t obtain a car loan with no credit history at all. There are some ways to go about it.
We’ll explore some of these ways here one by one. So keep reading!
In most cases, when you get a secured vehicle loan, the vehicle in question serves as collateral. The lender can recover his/her payment by revoking your ownership and selling the vehicle in case of default.
However, trying to finance a car without credit checks can be a tedious task. A good idea would be to offer another collateral apart from the financed vehicle.
This would give the lender an extra bit of security regarding the loan and will boost your chances of securing financing for your vehicle.
There are many dealers that specialize in dealing with loan applicants and providing them, despite having a history of no credit, auto loans.
A lending institution that is willing to approve your loan based on your present and not your past and financing your car loan without a credit check is the best thing that can happen to you.
AutoFinancingPro is one such entity that works to ensure that Canadians aren’t devoid of the joys of owning a vehicle just because they lack a credit history.
If you really want to purchase a car through financing and no formal organization is ready to offer you an auto loan with no credit check, then perhaps it is time to change your ways a little bit.
There are many private individuals or corporations who grant car loans with no credit history. They like to play the high-risk, high-reward game. They make your journey a little easier by lending you the amount without many questions or checks, but also put an increased burden on your pocket by charging a higher rate of interest.
On top of that, be very careful when dealing with such organisations, as they are not tied to any governing authority and can employ some shady recovery tactics in case of a default on payment.
Another idea is to find an individual with a good credit history and convince him/her to become a co-applicant for your loan. A friend or a trusted family member can be approached for this task.
In such cases, the lending organization will put more emphasis on the creditworthiness of the co-applicant for sanctioning the car loan without credit checks. He/she will be involved in all the legal formalities done in the financing process, with you and them sharing the legal liability of the loan.
Make sure that the person you choose as the co-signer is someone you can trust, and is someone you can easily contact and communicate with, in case things go south.
A proof of financial responsibility refers to any official paper or document that reflects the fact that you have a regular and stable income which can be utilized to make repayment of any loan taken.
In the process of financing a car with no credit check, these documents are used by the lender to decide the creditworthiness of the borrower. So, having them with you multiplies your chances of securing finance for your car.
Some proofs of responsibility can include:
Any of these documents, if submitted, can enhance your creditworthiness, making it easier to obtain a car loan with no credit history. All the lenders are looking for is assurance that the amount will be repaid, in whatever form it may be.
Another way of securing a car loan with no credit history is opting to pay a larger down payment. If you are comfortable with paying such an amount up-front, then a large down payment is a great way to reduce the burden of debt on yourself.
It also gives the lender some sense of security as the amount of loan to be sanctioned goes down.
In the absence of a solid credit history, small initiatives like these can do tons to uplift your creditworthiness in the eyes of the lender and make it easier to obtain auto loans with no credit.
Debt can be a great way of fulfilling your life’s goals without spending exorbitant amounts of money from your pocket at once. However, if not leveraged properly, it can also become one of the worst financial woes of your life.
It is important to be careful of the amount, interest, tenure and all other terms and conditions you are signing up for while obtaining debt.
Make sure you know what you are getting yourself into and don’t regret your decision in the future.
That being said, if you want an un-complicated, streamlined process for obtaining a car loan without credit checks in Canada, get in touch with AutoFinancingPro today.
Their dedicated team of professionals ensures that you can finance your dream car on your terms. AutoFinancingPro considers your present to be the most important, not your past. So, prior credit history or not, if you can display creditworthiness at the present moment, congratulations! Your auto loans with no credit will be approved in no time.
So give us a call to quell all your doubts and worries about car financing.
