What you need to know about credit scores when buying a car in Paris

What you need to know about credit scores when buying a car in Paris

Posted on July 6, 2022

If you want to know what score you need in Canada to buy a car, the answer is that it depends on a lot of things.

Our Paris auto loans team are going to talk about what you need to do to get the best possible car loan terms in Canada. By the time you finish reading this article, you'll feel like a pro at buying cars!

There is no uniform credit scoring system

The first thing you need to remember is that there are only two credit reporting agencies in Canada: Equifax and TransUnion.

Each of these companies is a private business that uses a different scoring method to figure out a consumer's credit score.

You could have a 720 with TransUnion, but only a 660 with Equifax; these discrepancies happen all the time. So, as a general rule, you should sign up for credit monitoring with both agencies. It's free, and this way, you'll know, at least mostly, where you stand.

You can get your credit score from these agencies, but different lenders use different scoring systems, so these scores are, at best a rough approximation.

What you need to do to get a good credit score

You can raise your credit score by doing a few things. The first one is the easiest, but most people don't think about it.

Pay down the debt you already have and try not to get into any more if you can help it.

Even though everyone in Canada has debt and household debts are at levels never seen before, this doesn't mean you should follow suit.

After lowering the total amount of debt you have, the next thing you should do is make sure all of your payments are always made on time.

This could be as easy as signing up for automatic payments, but again, most people just skip this step. If you do these two things, your credit score should go up.

A good credit score is only one part of the picture

You could have the best credit score ever, but that doesn't mean you don't have to meet any other underwriting requirements to get a car loan.

Having a good credit score helps, but you also need to make enough money to meet the requirements of the lender.

Lenders will want to know how much money you make regularly and if you can prove that amount. If you don't have bank statements and copies of your income tax notices of assessments, you won't be able to get a loan.

The best place to get a car loan in Paris regardless of your credit score

If you want a car loan, no matter how bad your credit is, you should always work with a local car dealership that specializes in helping people with bad credit get car loans. If you call these dealerships right away, you can get a new car faster.

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