New credit is when you have had no prior or existing trade lines, whether it be telephone line, credit cards, and loans of any sort. If you fit in this category and are wondering if it’s possible to get a car loan, yes you can! As a fresh credit client starts to build credit history, it is important to educate yourself so you know what you will need and also what to expect.
When applying for an auto loan, you must first ensure yourself and also the lenders that you will be able to afford the monthly payments, employment in this case is important. If you are currently unemployed then a co-signer will help your situation. If you are a newcomer to Canada, another thing you will need is proof Visa as the lender would want to ensure that you will be in the country for an extended period of time, if not indefinitely.
Prepare yourself for higher interest as fresh credit is placed in the category of high risk by default. Do not worry; interest may be higher but not astronomical. Interest is something that is primarily based on the applicant’s personal credit so there is not much you can do to change that, keep your focus on affordable payment.
By having your first car loan, you are not only getting behind the wheel of a vehicle that will allow you to keep up with your schedule, you are also building your credit and opening doors to many future opportunities. If you have new credit and wish to start your journey with Autorama, call 416-639-4899 or fill out our no obligation finance application at https://www.autorama.ca/financing/ and we’ll have one of our finance specialists secure your first approval through one of the many banks and lenders we work closely with!