• How to Apply for a Car Loan for Immigrants and Those Without Credit

    It’s not easy to get a car loan for new immigrants as they are regarded by lenders as credit risk because many of them have no credit history. Government figures show that an estimated 250,000 people emigrate to Canada each year and most if not all will have no credit history.

    Majority of Canadian lenders require that new immigrants have a minimum credit score before they can start a car loan application.

    Here are some tips for new immigrants to apply for a car loan, and how to find easy customized car loans.

    Consider Other Factors -- Not Just Credit History
    Toronto, Canada-based auto lender TREND Financial said that there are wide approval criteria used by lenders in assessing a car loan application. This means that if an applicant is weak in one area, such as no credit history, other factors can make up for approvals that then become easier. For new immigrant car loans, the company looks at the following, including but not limited, to provision of a signed employment contract from an employer showing the person’s salary, employment verification contacts, a housing lease/rental agreement or mortgage or proof from an employer showing that the employer is providing housing, and more.

    Your Bank Deposit can Help You
    According to Eric Kaplan, COO of TREND Financial, “Deposits can play a large role in equalizing the playing field.”

    Adds Mr. Kaplan, “One of the best ways to deal with a new immigrant car loan or no credit situation is to look at the security deposit, which can be a major factor in the loan approval process.”

    Article Created: 2013-10-18
    Article Updated: 2013-11-13

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