Credit score needed to get a car in St. Catharines

Credit score needed to get a car in St. Catharines

Posted on June 29, 2022

If you are curious about what score is needed to get a car in St. Catharines, the answer is, it depends on a host of factors.

Our St. Catharines auto loans team are going to cover what steps you need to take, so you can access the most competitive car loan terms possible in Canada. By the time you reach the end of this article, you will feel like a car buying pro.

Not all credit reporting agencies are created equal

The first thing you need to bear in mind is that there are only two (2) credit reporting agencies in Canada, TransUnion, and Equifax.

Each of these companies are private organizations and use different credit scoring models to determine the credit score of a consumer.

You could have a 720 with TransUnion but a 600 with Equifax (yes, the disparity can be that extreme). So, as a rule, you should sign up for credit monitoring with both agencies; it is free, and this way, you know precisely where you stand, at least for the most part.

While you can access your credit score with these credit reporting agencies, different lenders will also use different scoring models, so these scores are only a ballpark figure at best.

Steps to take if you want to have a great credit score

You can do a few things to help raise your credit score. The first is the simplest, but most people overlook it.

• Pay down your existing balances and try not to incur any new debt if you can help it. While everyone is carrying debt in Canada, household debts have never been higher, but it doesn’t mean you should be like everyone else.
• Aside from reducing the total amount of debt you are carrying, the next thing you should do is always ensure your payments are made on time, all the time. This could be as simple as signing up for pre-authorized payments, but again, this is a step that most people simply overlook.

If you follow these two steps, you should see your credit score improve.

Having a good credit score is just one piece of the puzzle

You could have the best credit score in recorded history, but it does not mean there are no additional underwriting requirements you need to satisfy in order to get a car loan in St. Catharines.

While having a great credit score helps, your income also needs to be sufficient to meet the underwriting requirements.

Lenders want to see how much money you are earning on a regular basis and if you can verify those amounts.

The only way you can prove your income is by providing bank statements and copies of your income tax notice of assessments; without these documents, your loan will not be approved.

How to get a car loan whether you have great or not so great credit

If you are serious about getting a car loan, regardless of your credit, then you should work with a local car dealership, one that specializes in securing car loans to credit-challenged borrowers.

The sooner you contact these dealerships, the sooner you can get a new car.

When you’re ready for a car lease or loan, get in touch with the St. Catharines auto loan experts at Northway Ford for great deals on auto finance.