7 Frequently Asked Questions About Credit Scores, Bad Credit & No CreditMay 31th, 2018
Canadians have a lot of questions about credit, especially here in Toronto. What does my credit score mean? Can I buy a new car with bad credit? How do I build credit? Are there dealerships in Woodbine Ontario that help bad credit customers?
The Finance Team at Woodbine Nissan can answer these questions and more. We specialize in providing second-chance credit solutions for people trying to rebuild their credit. Need new or used car financing in Toronto? Look no further than Woodbine Nissan.
#1 How Often Should I Check My Credit Score?
You can check your credit report once a year for free! We recommend doing so in order to ensure everything that has been reported is accurate.
#2 How Long Does it Take to Establish Good Credit?
Rome wasn’t built in a day, and neither is your credit score. However, within three to six months of credit activity, you can begin to establish credit. And, a history of timely monthly payments will lead to a good credit score.
We recommend applying for a secured credit card and making regular monthly purchases. Be sure to pay those purchases off immediately. The earlier you start making timely payments, the better.
#3 Can I Get a Loan with No Credit Score?
Nissan Canada offers several options for customers who have little credit or no credit. That includes people new to Canada, recently graduated students or first-time drivers. For more information, click here.
#4 There is a Mistake on My Credit Report… Now What?
Checking your credit report for inaccuracies is important because it is YOUR responsibility to report mistakes. If you have found an error in your report, contact the agency responsible for reporting it immediately to begin the resolution process.
TransUnion and Equifax are Canada’s two major credit bureaus. Both provide detailed explanations on how to include a statement with your credit report explaining the error.
#5 Do I Need a Cosigner?
If you have bad credit or a low credit score, chances are you might be asked for a cosigner. A cosigner is someone you know who has good credit that agrees to sign the car loan with you guaranteeing you will make all of your payments on time.
If you are unable to make a payment on your loan or you default on the terms of the loan, your cosigner becomes responsible for making payments. Most people ask a partner, parent or close friend if they will cosign. Cosigners significantly improve your chances of being approved for a new or used car loan.
#6 What is the Most Important Factor in a Credit Score?
Your credit score is calculated by using information from your credit report and a formula used by the credit bureaus. Your credit report tells lenders seven things about your borrowing history:
- Outstanding Debts
- Payment history
- Type of credit accounts
- Number of credit accounts
- Balance-to-limit ratio
- Recent inquiries and credit checks
- History of Credit Accounts
The most important of these, and the one that affects your credit score the most is payment history. Payment history tells a lender how responsible you are for your payments i.e. if you miss payments, or make them late. It also tells a lender how long you have been building credit for.
#7 Can Anyone Check My Credit Score?
The Government of Canada has laws outlining who can access your personal information and credit history. If you apply for credit at Woodbine Nissan, we need your permission to access your credit report before we can pull your score. Once you have given the OK, we can check your credit score and quote you a car loan interest rate.
Bad Credit Car Loans in Toronto
At Woodbine Nissan, we don’t care if you have bad credit or no credit at all. We are your one-stop-shop for vehicle financing and auto loans in Toronto. We work with Ontario’s top financial and lending institutions, and our expert team of financers can work to find you the best interest rate possible.