Car Loans For Newcomers To Canada In Flamborough

Car Loans For Newcomers To Canada In Flamborough

Posted on February 4, 2021

If you have recently emigrated to Canada, you’re going to quickly realize that you’re going to need a car to get anywhere. That can bring with it some challenges if you have not long arrived. Not only do you need official paperwork, you might also need access to a Flamborough car loan. But Car loans for newcomers to Canada should be easy!

We can help with some of that but you will benefit from preparing the way first.

Car Loans For Newcomers To Canada & Credit Scores

The one thing you should know right away is that you cannot bring your credit score with you to Canada. In fact, you cannot take your credit scores out of the country you built it in. It’s the way the system works.

That means, once you arrive to begin your new life, you also have to begin a new credit history.

That has obvious ramifications for car loans or any kind of borrowing.

This country works the same as most others. To access any kind of credit, you need a credit history to show what kind of borrower you are and a credit score, to help lenders categorize the types of loans or credit you would be eligible for.

When you first arrive here, you will have neither of these.

It won’t take long to get them through!

Building credit in Canada

Before any lender will regard you as eligible for a car loan in Flamborough, you will need to begin building a credit history. It takes time but it’s necessary and it’s relatively painless.

Credit builder credit cards – These are specialist credit cards provided for those with bad credit to help rebuild. They can also help those with no credit history build. Use it for daily expenses like groceries and make sure to pay it off in full each month to keep costs low.

Bills and phones – Paying bills on time and getting a phone contract won’t always increase your credit score but they can help create a payment history. If you’re renting somewhere, ask if the landlord would be willing to make a note on your credit report too. It all helps.

Expect to spend at least a year building a sufficient credit history for lenders to begin to want to deal with you. You may have to consider a small car loan in Flamborough to begin with but you should easily be able to borrow enough for a used or cheaper car.

Then you can continue as you normally would. Pay on time, be sensible with borrowing and gradually, over time you will build as good a credit score as you left behind.

It’s a real shame that we cannot take our credit scores with us when we move but that’s down to the credit bureaus. In the meantime, you just have to do what you can and use every trick in the book to build a credit history in Flamborough.

When you’re ready for your car loan, come see us. Contact Unique Chrysler for help, advice and competitive car finance.

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