In the past 5 years the No Credit Car Loan industry in Canada has changed dramatically.
Presently there are only 4 financial institutions that offer Bad Credit Car Loans in Canada. Unfortunately if you have no credit at all in Canada, Carfinco is only Company that offers Vehicle loans to people with no credit. They have only one standard rate for everyone at 29.5% annually.
For a person seeking a no credit car loan in Canada this rate is extremely high for someone entering into the credit world of Canada. It seems Non-Prime lenders in Canada prefer to lend money to people with previous bad credit before giving a No credit car loan?
If you are new to Canada you could qualify for Scotia Banks Startright program offering vehicle loans to Permanent residents and foreign workers. However if you’re a Canadian citizen seeking a no credit car loan there isn’t solution on your own other than Carfinco at 29.5 percent interest.
The best way to obtain a no credit car loan in Canada is to apply for a pre-paid credit card in Canada. Once you have obtained your pre paid credit card you can apply for a no credit car loan.
The best place to get your pre paid credit card in Canada would be Capitol One. You can apply online and it rakes about 4-6 weeks from time of application to get your credit card. Once you have the card capitol one will report to Equifax about a month later. Upon your first report from Capitol one to Equifax you will qualify for a loan.
Always remember the 40% rule with any new or older credit car in Canada. If your credit limit in $1000.00 and you wish to carry a balance over to the next month you should never carry over a balance more than 40%
If this is hard for you to understand here is an example for you? You get your new credit card and decide to go shopping. After shopping you spend $900.00 on your Card and at the end of the month you get the credit card bill and decide to make the minimum payment! DON’T! If you accumulated $900.00 on your card make sure you pay 60% of the $900.00 which would be $540.00. This will assure your beacon score stays high.
For more credit tips you can visit Auto Source Financial