Is it possible to get an auto loan without a credit history? Yes, but it may take some extra work on your part. So get your paperwork together and start making preparations well before applying for the loan.  We’ll provide some additional tips below.

Why Credit Makes Such a Difference

Whether or not a bank or lender is willing to lend you the money for your next vehicle is entirely up to them. They have standards and rules to decide who is eligible and who is not. Typically, much of this decision is based on the applicant’s history of paying utility bills and credit card bills on time and being financially responsible. These are the things that result in a good credit rating.

What if you’ve never needed credit in the past or preferred not to use it? Or perhaps you were in a relationship and your partner’s name was on the utility bill. As a result, you lack a credit profile and won’t have a credit score.

How will the lender make a decision should you apply for a car loan? Fortunately, there are ways you may still get the loan. We’ll outline below how you can have the best chance of success.

How to Qualify Without a Credit Profile

You can do several things to improve your standing in the eyes of the lender. Let’s start with the paperwork.


  1. Gather any paperwork showing you are financially responsible and have a regular income. Pay stubs and proof of employment are crucial to proving you will be able to make the payments. Include your employment history so the lender can see you have been a consistent earner. If you are on a pension or disability, have these documents ready to present.
  2. Provide a history of your living arrangements and any rent paid. Even if informal, signed statements can be much more valuable than nothing.
  3. Also, think about any service you regularly use, such as phone, internet, or cable TV. Present proof that you have routinely paid for these services on time.
  4. You will need to provide your driver’s license with your correct address.

 Large Down Payment

If you have some cash saved for the car, make a sizeable down payment, as much as you reasonably can. Doing so will improve your chances of getting the loan considerably. A reasonable down payment demonstrates your responsibility because you are risking some money. Of course, it also means you won’t need to borrow as much.


Can someone co-sign for you? If a relative or close friend is willing to co-sign for the loan, this will vastly improve your chances. The person co-signing will need to have good credit for this to be effective. If you opt for this, you should be absolutely certain that you will be able to make the payments. If you were to miss payments, the co-signer would be responsible for paying for the car. This is a serious responsibility, and the co-signer should fully understand the implications.

 Start Building Credit

It’s never too late to start building credit. First, apply for a credit card and start buying some of your regular purchases with it. Then pay the bill off ahead of time each month. You will begin to build a credit profile in your name. You should have a good chance of getting a card with a low credit limit, which is fine if you will only make small purchases.

This step will not produce immediate results, but if you plan ahead, you can begin to build good credit in a surprisingly short time. Combined with some of the other methods listed above, you will have a great chance at landing that loan after all!

Another Source of Help

You can also enlist the help of the experts at Consumer Auto. Our business is helping Canadians to purchase the vehicles they need. We have a lot of experience dealing with lenders and assisting people with poor credit or no credit to qualify for a loan.

Your best move is to fill out our online application. It should only take about 2 minutes. A specialist will then contact you to help you qualify for the loan best suited to your situation.

We want you to succeed and will search for a lender who will award you the loan for your next car. So let’s get started today!

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