How to Get a Car Loan in Canada as a Student
Getting a car is a significant milestone that can make a student’s stressful life much easier. Having a reliable vehicle to get you to and from school is incomparable. However, many students may not have the funds to purchase a new car outright, and their credit scores may not be built up yet to get them approved for a loan. But don’t worry! Here at Taz Loans, we have compiled some tips for getting a reasonable car loan as a student. Keep reading to learn more!
Improve Your Credit Score
One of the first things lenders look at when considering you for an auto loan is your credit score. A good credit score will increase the likelihood of getting approved for a better loan. An active credit profile and a good credit score can be achieved by consistently paying off your credit card or other loans on time.
Get a Steady Income
Income is another factor that lenders may look at when considering you for a loan. Even having a part-time job is an excellent way to show lenders that you get money regularly and proves to them that you have the means to pay off your auto loan on time.
Make a Down Payment
Making a down payment can play a significant role in getting approved for an auto loan. Not only can making a sizeable down payment save you money on interest in the long run, but it can increase the likelihood of getting approved for better rates and terms. Try to save up a few hundred or a couple thousand dollars before deciding to finance a car.
Consider a Co-Signer
If you have an average credit score, an unsteady income, or a minimal down payment, asking a reliable friend or family member to act as a co-signer can get you approved. A co signer will be able to cover the cost of your payments if you are unable to. However, this is a big responsibility for both parties, and if you feel you cannot repay your loan over time, you can put yourself and your co-signer in a bad position. Deeply consider your situation and options before applying for an auto loan.
Contact Taz Loans
At Taz Loans, we pride ourselves on offering competitive financing to those from all walks of life. Whether you have good credit, bad credit, or no credit, we have high acceptance rates and reasonable payment plans to help you own your dream car faster. Contact us to learn more!