Getting a vehicle in Canada can help you in many ways. However, it can be more amazing when you have a pre-approved car loan. The good part is that securing pre-approval for a car loan is an easy process. All you have to do is gather the required information and find a lender. Keep reading the guide to know how to get a pre-approved vehicle loan in Canada.
How to Get a Car Loan Pre-Approval
When you are in Canada, you have to go through a simple procedure to get a pre-approved car loan. If you are a newbie, we are here to help you out by detailing the procedure. Keep reading the following steps to learn more:
Step 1: Check Credit Score
The first thing you have to do to get pre-approval for a car loan is to check your credit score. If you have a high credit score, you have a chance to get a pre-approved car loan with high interest.
You can either use a third-party website or credit bureaus in Canada to check your credit score. Generally, a credit score above 660 helps an individual secure a car loan. If you have a bad credit score, it’s better if you improve it first before applying for a car loan.
Step 2: Get Required Documents
If you have a good credit score, congratulations! You can move forward with step two. Besides submitting the application, you have to provide the required documents to the lender.
The documents will help the lender verify your identity and financial health. Lenders in Canada usually ask for employment letters, photo identification, pay stubs, and bank statements for document verification. Once you have all these documents, you can start the pre-approved car loan procedure.
Step 3: Compare Car Loan Lenders
Before you confirm the car loan, it’s important to find a lender who will offer the lowest interest rate based on your credit score and financial profile. When you get a loan with a lower rate, it can save you thousands of dollars.
Using an online loan aggregator is the most effective way to compare lenders. You only have to input a few details like your income and credit score, and the aggregator will show a list of suitable lenders.
Step 4: Complete the Car Buying Financial Process
Once you find a suitable lender, go to the car dealer with the pre-approved car loan letter. Choose a vehicle that suits your requirements and budget. As you already have a pre-approved loan, you can narrow down your options based on the budget.
After finding the car you want to buy, complete the financial procedure by providing the required details and the application from the lender.
Conclusion
Buying a car in Canada is a hassle-free procedure, especially when you have a pre-approved car loan. From checking the credit score to finding a suitable lender, you have to follow some easy steps. If it’s your first time, seek help from an expert.