915 WALKERS LINE, Burlington, ON, L7N3V8, Canada
My Garage

Car Loan With No Credit History In Halton Hills

Car Loan With No Credit History In Halton Hills

Young people face an almost unsolvable conundrum. You need a credit score to access most forms of credit but you cannot build a credit score without using credit. Making a car loan with no credit history more difficult than it should be.


So what can you do?


There are actually a couple of moves you can make to help you build a credit history in advance of a car loan in Halton Hills.


Credit cards


As a young person, you have two credit card options. You can apply for a specialist credit builder credit card or become an authorized user on another credit card.


Credit builder credit cards – Credit builder cards are designed to help people build credit. They are expensive if you don’t pay off the amount each month but if you always pay off the outstanding balance, they don’t cost much at all.


Authorized credit card user – If you know someone who trusts you enough to be let loose with their credit cards, becoming an authorized user can help build up your credit score.


Halton Hills rent and utilities


Depending on your living situation, paying rent and utilities in your own name can also help build a credit score in Halton Hills. This isn’t as effective as using credit cards but every little helps.


Some landlords will add a note to your credit report. The same for utilities. While they aren’t exactly credit, your credit history is partly made up of payment history, which landlords and utilities can make a small impact on.


Once you begin building a credit history, you can begin planning for your first car loan.


That means:


Saving for a down payment – Save as much as you can to put down on the car to help reduce the loan amount. A down payment also reassures lenders that they will recoup at least some of their money should you default.


Using a cosigner – If a parent or older sibling is willing to trust you, using them as a cosigner can also help your application. As long as that person has a sufficient credit score to qualify for the loan, they can help you access a good rate.


Get pre approved – Halton Hills car loan pre approval is a useful tool to assess how much you can borrow. It should also give you an idea of the type of interest rate you’re facing. This can help set expectations and a budget.


Starting small – It helps to set your expectations when buying your first car. You should aim to buy a reasonably cheap car that will be affordable, cheap to insure, cheap to run and to repair. Once you have 6 months successful car loan payments behind you, your credit score will increase, opening more doors later.


Plus, if it’s your first car, you’re going to bump and scratch it so driving something cheap and easy to repair makes extra sense!


Work with car loan specialists - When you’re ready to apply for a car loan in Halton Hills, working with loan specialists can drastically improve your chances of acceptance. We have access to more lenders and can help you prepare your application so it stands a higher chance of success.


We can even find you a car while you’re here!


Contact Unique Chrysler for help, advice and competitive car finance.


Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!


Categories: Auto Loan

Tags: ,