thomas3940's Blog

Trying to get a Car Loan in Canada with no credit or bad credit can be a tiresome task. Many people go to car dealerships thinking the finance managers can get them approved for a car loan regardless of their credit history?

The truth is many if not most car dealer finance managers have little to no experience in consumer credit. Many Finance Managers or Business managers are ex car salesman or have taken a Business Managers course for a few weeks and then learn by trial and error.  

Most times they just submit your credit information to all financial institutions and hope for some form of credit approval. Many times they don’t even analyze your credit profile prior to submitting your information to the financial institution.

Then when all the financial institutions have declined your credit application they inform you that they were unable to obtain a car loan for you?

This also applies to many car dealers or so called financial brokers who advertise No Credit, No Problem Car loans. Once again you’re dealing with someone who has limited experience in consumer credit and once again they will submit your information to the credit lenders they think will possibly approve your application and hope for the best!

What they don’t tell you is when they submit your information to all the financial institutions each institution does an individual credit enquiry on your credit bureau!

Are you a new immigrant to Canada? A Foreign Student in Canada ?  Or just one of many Canadians without a credit card? Your only opportunity to successfully obtaining a credit card in Canada is by getting a Secured Credit Card

Almost no one is turned down! That’s right. If you’ve gone through the embarrassment of rejection by your local bank or credit union, and are afraid to try again, this is your best chance to enjoy all the benefits and responsibilities of a credit card, without fearing the application process.

The reason?

For starters, the application is completed online, without ever having to discuss your financial situation with another person. In fact, YOU set the credit limit based on your own ability to secure the credit card through a cash deposit. Isn’t that nice?

Below is a list of Banks and Credit Unions where you can apply for a Secured Credit card.

Capitol One Secured Card

With a secured card you’re given credit, just as you would with any credit card, but you’re also required to provide security funds before you can access your credit. These security funds could be as low as $75. Also, we report your payment information to the credit bureaus each month, giving you the ability to build your credit history. Capital One Guaranteed Secured MasterCard is a great way to build your credit history and start enjoying the benefits of a credit card. Rent a car, reserve a hotel room, and buy things online. It's all possible when you have a Capital One Secured card.

The Home Trust Secured Visa

 Is a credit card that requires a security deposit for eligibility? Your credit limit is then set at the amount of the deposit. You can put down as little as $1,000, or as much as $10,000.

Vancity Savings Secured Visa

I’ve recently immigrated to Canada and don’t have a credit rating yet. How can I get one?

Consider applying for a Vancity Secured Visa card. With as little as $500, you can get a Secured Visa that will allow you to obtain credit. By putting some money in a term deposit, you guarantee your debt and we can extend you credit. After you’ve had the card for one year and have made all of your payments on time, we’ll release the guarantee and you can spend or save your money. You’ll also have an improved credit rating. To apply for a Vancity Secured Visa card, visit any Vancity branch.

Horizon Plus Secured MasterCard

Has opened the doors to virtually all Canadian residents wishing to have a credit card. Specifically designed for those people who do not qualify for traditional unsecured cards.

HSBC Secured Master Card

MasterCard® with a secured credit limit

Even though you have bad credit or no credit, you may still qualify for a major credit card. Here's how it works: you put a certain amount of cash (say $1,000) in a frozen bank account for security, and the bank issues you a credit card with a similar credit limit. Talk to a customer service representative at your financial institution for more details.

Remember when applying for these credit cards you do not need a Social Insurance Number! Please also remember that offering up your social insurance number to financial institutions is not required by Canadian Law. The only people who should have your Social Insurance Number is your employer, Human Resources and Social Development Canada and Revenue Canada. This is a private number established for tax purposes only! Don’t give this number to any bank as it’s not required. You will notice when applying online when a financial institution asks for your SIN number it’s not mandatory because they know under Canadian law their not entitled to have it.

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all makes leasing and Car, Truck and SUV loans for people with No Credit, Bad Credit in Canada.

After you have been discharged from bankruptcy or completed your proposal, you may be a good credit risk, since you have no debt. Naturally, you will find it a little harder to get credit until you can re-establish a good credit rating.  

You can get credit again after a bankruptcy or a proposal. The bankruptcy and proposal laws of Canada are intended to give you a fresh financial start. The ability to rebuild credit is part of that new start.

Tips on Rebuilding your Credit Rating:

When a person declares bankruptcy the Office of the Superintendent of Bankruptcy notifies the credit bureau. This information stays on your credit bureau report for 6 years after the date of your discharge. A proposal stays on your credit bureau report for 3 years after your proposal was completed. You can start to re-establish your credit by doing the following:

Talk to your banker and say you want to re-establish your credit rating;

Open a savings account;

Be a regular and persistent saver.  Use the common techniques I am sure you have heard of: 

1) Pay yourself first; 

2) Take your next raise and save it; 

3) Save 5 % of your pay; 

4) Have your savings come right off your pay and into a separate savings account;

Take out a small loan using the savings account as collateral, and then pay it back;

Using a secured credit card is a quick way to rebuild your credit rating. For example, Horizon Plus reports your payment history to the credit bureaus each month. As you make regular payments your credit history looks better and better. You are virtually guaranteed that you will receive a secured credit card from Horizon Plus.

Pay your credit card balances on time.

After Bankruptcy Lenders:

The following lenders will give serious consideration to your loan application, knowing you have completed bankruptcy or a proposal:

Secured Credit Cards:

Car Loans;

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all makes leasing and Car, Truck and SUV loans for people with No Credit, Bad Credit in Canada.

When looking for car finance you will come across many offers stating No Credit, No Problem 100% Car loan Approval? This offer isn’t completely true unless the car dealer is going to carry the loan himself.

There are Car finance companies who specifically deal with people who have a poor credit history. They will be able to help you regardless of your situation, such as if you are self employed or have no credit history at all. The loan you can achieve is based only on your current capability to pay it back.

The usual period of time a loan can be stretched out for is 5 years so if you have your eye on a vehicle you will have to make sure you can afford the repayments based on this set time. Only 4 companies in Canada are specifically tailored to conduct business with people who have a poor credit rating or similar situation and for whom it would normally be difficult to acquire a loan. Whether it's a low credit rating, self employment, or no credit rating at all they have been designed to offer you the finance you need.

Dealing directly with the Car Dealer sometimes has its pitfalls as the Car Dealer may state he is helping you, but in most account he is helping himself. No all Car Dealers understand Consumer Credit and just want to sell you a Car. Sometimes you will be told that the Car being offered to you is the only one you qualify for? This is absolutely UN true as the No Credit; Bad Credit lending institutions don’t specify the car at all. They give the Car Dealer a Payment Call based on your ability to repay the loan. This Payment call is determined on your monthly income and previous credit history.

Auto Source Financial works directly with these lenders and car dealerships to assure you get the best financing available!

You may not be able to get the car of your dreams straight away, but obtaining the car you need and building up your credit rating is one step towards it.

Once we have secured a No Credit Car loan for you, we then work with you to assure all your needs are met. At the same time our Credit Analysts will work with you to help you understand how Credit scoring works in Canada. They will show you step by step on how to repair your Credit File.

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all makes leasing and Car, Truck and SUV loans for people with No Credit, Bad Credit in Canada.

Auto Source Finance’s networks of lenders specialize in providing car loans for people with bad credit. We have carefully designed our application to be easy to understand and fast to complete.  You can be approved in 24 hours or less. Vancouver Auto Finance’s network of lenders will review your application and compete for your business.  At Vancouver Auto Finance, our experts work to get you approved. 

Auto Source Finance will approve your; Bad Credit Car loans BC, Car Loans BC, No Credit Loans, or Foreign Students and Foreign Workers

Approved Car Loans

Does your past credit history make you nervous about applying? Regardless of your credit history, you can qualify through Auto Source Finance for an auto loan.  We will focus on you ability to pay and not on your past credit history. Vancouver Auto Finance specializes in those who have experienced financial distress as a result of divorced, lost wages due to illness or disability, the loss of a job or identity fraud. 

At Auto Source Finance, we understand the burden placed on you or your family by the day to day grind of everyday life. Situations arise that are beyond your control; deaths, loss of a job, divorce, bankruptcy, there are a multitude of potential issues that could have impacted your past credit history. We have assembled key lenders in and around the Vancouver area who specialize in getting applications through and drivers on the road. Auto Source Financial 80% success rate at approving hard to finance circumstances will get you in the car you want! Our network has access to thousands of vehicles, one of them will be just right for you!  

For more information about Car Leasing for New Immigrants or Foreign Students in Canada visit www.autosourcefinancial.com. Auto Source specializes in all make leasing and Car, Truck and SUV loans for people with No Credit, Bad Credit too!