Our Bronte auto loan team frequently helps people access credit as an immigrant to Canada. It’s part of a wide suite of services we offer around car loans.
If you’re new to Canada, first, welcome! Second, here’s what you need to know about how to build and access credit as an immigrant.
Credit in Canada
Did you know that your credit record doesn’t follow you when you move countries? Not many people do. Despite credit bureaus being international, your credit report isn’t.
Therefore, if you move country, you have to begin all over again.
Open a Canadian bank account
Your first step to access credit as an immigrant in Canada is to open a bank account. Everything else will stem from there so it’s an important first step.
If your old or existing bank has a presence in Canada, you could open an account with them. As you’re a known quantity, you may be able to open a full account with more features.
Otherwise, Canadian national banks have specific accounts for new arrivals and we recommend getting one of those.
Get a credit card
A credit card is where building credit in Canada begins. The bank you opened an account with may offer a limited credit card with low credit limit. It would likely be easiest to use one of those to begin.
You could also use a secured credit card. These require a cash deposit equal to the credit limit but will otherwise be identical to a standard card.
Set up an automatic payment from your Canadian bank account to ensure you never miss a payment.
Don’t just pay the minimum though. Aim to repay the balance in full each month to avoid interest.
Get a cell phone
Some Canadian carriers don’t require a credit check and some will also report your monthly payments to the credit bureaus. Find a network and a contract that works for you.
Set up automatic payments for your phone contract to avoid missing any while you’re setting up your new life.
Apply for an auto loan in Bronte
You can’t go far without a car outside cities in Canada so you’ll need one at some point. If you can wait a few months, using a credit card regularly and having a cell phone that reports payments will help build a credit score.
We also have specialist loans for new immigrants that can provide funds to buy a car. You’ll need a down payment to be accepted but otherwise, you should have no problem qualifying for one as long as you can afford the repayments.
Our team can help you with this if you need.
As in your old country, building a credit history in Canada is a gradual process measured in months and years rather than a quick hit.
Fortunately, there are financial products around to help you on your way and specialist lenders willing to provide credit to new arrivals.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!