How Does Auto Credit Work?

December 12th, 2017 by

Car Loan

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New car buyers should know how auto credit works before they begin the financing process. Let’s check out the basics first:

  • Canadian auto credit is determined by your credit score.
  • Your score is calculated by the two Canadian credit agencies: Equifax Canada and Transunion Canada.
  • The average score needed to buy a used car is 655.
  • Some bad credit auto dealers specialize in loans that will rebuild your credit.

Find out more about how auto credit works today!

What’s the Difference Between Auto Credit and a FICO Credit Score?

While a standard credit score is used for many purposes, your auto credit score is sent to lenders to determine your next auto loan’s interest rate, the amount of your downpayment, and whether or not you qualify for a loan. Your auto credit score is determined by the following factors:

  • Negative factors like a history of collections
  • Late payments on a loan
  • Any repossession history
  • Overall credit over the last two years

Auto loan providers like YEG Auto Credit will use your auto credit score to determine if you qualify for a loan. We specialize in helping customers with low credit repair their credit history, so stop by today to apply.

How Do I Improve my Auto Credit Score?

Fort McMurray drivers who want a better interest rate will want to heed this advice:

  • Check your credit score on a regular basis, and dispute any incorrect items that appear on the report.
  • Make regularly scheduled payments on time and in full.
  • Consult with a trusted agency like YEG Auto Credit. They can analyze your credit history and figure out the best way to proceed.

If you’re looking for a new or used car, truck, or SUV, a loan from YEG Auto Credit will make the buying process easy.

Visit YEG Auto Credit Today

Whether you’re looking to rebuild your credit or get a great rate on a loan, visit YEG Auto Credit. We’re located at 13815 Manning Dr. NW in Edmonton, AB, and we’re easy to reach from Fort McMurray and beyond. Text or call us at 780-446-4558 to get the ball rolling!

Posted in Credit Information