4 Ways to Buy a Car With Bad Credit or No Credit

Buying a car is a big deal and a significant step towards your personal independence. For first-time buyers, it marks another step in adulthood, which is exciting and daunting at the same time. A car means not having to depend on others or public transport. You can go where you want, whenever you want. 

Most people hit a brick wall when they’re applying for financial assistance to buy a vehicle. Three types of situations could negatively impact your application for a car loan: first-time buyers, buyers with a bad credit history, and buyers who haven’t had the opportunity to build a credit history. 

Thankfully, if you follow these simple instructions, you can still secure financing for your vehicle:

1. Get Organized
2. Try and Find a Co-signer
3. Improve Your Credit History and Save
4. Apply for Subprime Auto Financing

Apply for Financing With Bad Credit or No Credit

1. Get Organized

In Canada, two major credit bureaus generate credit reports: TransUnion and Equifax. These institutions will generate your credit report based on your two-year activity. If you’ve been inactive during this period or have no credit history at all, you could collect all the unnecessary documentation that will aid you in your financial application.

Gather as many documents as possible that relate to proving your employment history. This can include pay stubs, employment letters, tax returns, or even a job offer letter. In addition, you must demonstrate that you pay your bills and rental or mortgage agreements on time. 

Basically, any documents that show you have a stable living situation and that you’re financially responsible. A copy of a six-month bank statement can be handy too. The lender can see how you manage your money and identify any erratic spending habits.

2. Try and Find a Co-signer

Finding a co-signer is another possibility. Typically, relatives or friends help each other out. This improves your chances of financial assistance approval considerably.

Lenders feel more confident approving loan applications if your co-signer has an excellent credit record. Keep in mind that the loan will reflect on your cosigner's credit report, and it requires great responsibility on your side. You must be 100% certain that you’ll be able to afford the repayment conditions of the loan agreement, as you’ll be risking someone else’s credibility.

3. Improve Your Credit History and Save

The last option is improving your credit score or history if all else fails. Unfortunately, this will take some time, but it’ll considerably improve your chances of getting finance. While you work on your credit history, you should also consider putting some savings aside. Make your utility, mortgage, credit card, or rental payments on time.

Lenders want to see that you’re financially accountable and responsible. If you have both of these factors sorted, you’ll be able to afford more expensive used cars or be able to buy your dream car straight off the showroom floor.

4. Apply for Subprime Auto Financing

At iRide Auto Financing, we understand that taking these steps might not be a viable option for many, that’s why with us there’s No Such Thing As Bad Credit When You Get a Car Loan from us! Even with bad credit or no credit at all, we can help you get closer to purchasing the car of your dreams. 

You can contact iRide Auto Financing in Regina today to make an appointment to see a Financial consultant and find your perfect next car.

Apply for Subprime Auto Financing