Can I Get A Car Loan If I Am A New Immigrant?

There are hundreds of thousands of people migrate to Canada every year

, among them many refugees, family class immigrants, or economic immigrants. For those of you who migrated to Canada as economic immigrants you probably are used to a comfortable life style in your country, and expect to be able to finance a new car when you land to this country. But the equation is not as simple as that, most of the new immigrants are declined for a car loan when they are applying for credit even with significant amount of down payment. For the new immigrants the biggest challenge is some thing called "credit history", simply put this means you will have no credit record in this country. The banks or the lending institutions have no idea if you are a good client that will pay them back on time and therefore unwilling to take a chance on your loan. It is quite common for a new immigrant to walk into a car dealership, thinking they will be able to afford the vehicle and been turned down due to lack of credit history.

If you fit this profile, the first thing you should do is not to apply for credit in a brand new car dealership at all. Not only this would be a complete waste of your time, you may also risking losing your security deposit you put down on a vehicle. There are very few manufactures that are willing to finance some one with no credit history. Mercedes Benz Canada for one is an exception! Mercedes offers a pre-paid lease program to all their clients, whether you have bad credit, no credit, even no income it would not matter as long as you can pre-pay your total lease obligations up front. This maybe one exception in which no everyone can afford, if you are looking for something more affordable this option is out of the window.

If you have bad credit, or no credit history in this case. You should seriously consider to apply to a bad credit car loan service, these service providers specializes in high risk car loans but have a much lower approval requirement when it comes to the credit application. The required credit score is much lower than your traditional car loan, but the catch is the interest rate is higher. Depending on how badly you need a vehicle sometimes this would is your best option for the time been. You may also get turned down from some bad credit car loan providers due to your lack of credit history. If this happens to you, the last resort is to apply to a no credit check car loan provider.

This particular breed of car loans is extremely rare but they do exist. This type of car loan will not require a credit application from you at all; they will approve everyone with or without credit history for a small amount of down payment. So the next time you are on the hunt for a car loan give them a try and you will be pleasantly surprised just how easy that process can be.

by: Rick Li

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