It is a norm for new Immigrants into Canada to heave a deep sigh of relief while relishing the splendour and limitless opportunities Canada presents.
Settling down in a new country with different people, culture and lifestyle is not entirely an easy process. The language barrier, getting a nice apartment, and a job is among the hassles new immigrants face in Canada. However, armed with the right information assimilation can be simplified.
Canada is a thriving place for entrepreneurs and investors and aside from the fact that Canada is a prosperous nation that thrives on its diversity, Canada has one of the best banking systems in the world that can weather any eventuality.
Many new immigrants who wish to start a business have encountered difficulty securing a loan, this is not uncommon as new-immigrants may not have a good credit score or work history which is a major prerequisite for eligibility.
Building a good credit history takes time usually, around 18-24 months is required before financial institutions approve your loan request.
18-24 months is a long time to build a credit history especially when you have a pressing financial need, but this hurdle could be overcome if you have the right information.
One of the very first things every new-immigrant should do upon arriving Canada is to establish a recognizable credit history in Canada, additionally, your good foreign credit history can improve your chances of being approved for a loan.
Tips To Getting Your First Loan Request Approved
Obtaining A Secured Credit Card
A secured credit card allows new-immigrants to build their financial reputation in Canada. You are required to pay an upfront fee of $1000 to the credit provider as caution in case of a default. After 12 months of successful repayment, your deposit will be returned to you.
Missing or skipping payment can hurt your credit score, it is very important to practise responsible credit habits.
Borrowing within your means and prompt repayment is another way to slowly build your financial reputation
Remember, you are considered “new” for the first three years after your arrival, so it is important you establish a good credit history as soon as you arrive.
Prompt Regular Payment
When you pay your utility bills promptly and regularly and your landlord can attest to your financial appropriateness for at least a year, this can serve as an alternative credit history if you do not have a good Canadian credit history.
With these checks in place, obtaining your first personal loan as a new-immigrant is relatively easier, Canadians are extremely polite and if you can establish your trustworthiness and gain confidence, life in Canada will be sweeter than Poutine!.
Did you know you can still qualify for a loan even with a bad credit history? The following institutions provide expedited loan services
Let me know in the comment section about your experience with the aforementioned loan services.