How long to build credit/get a car loan?

[barch88]

Hey everyone,

I landed 3 months ago now. I have a steady income as does my wife. My wife doesn't have good credit in Canada, not that it's bad she just doesn't have really any credit history so a co-signer is out of the question.

When I landed I obtained a Scotiabank VISA card and when I got my SIN I updated my SIN with Scotiabank right away to start earning good credit. My question is this, about how long until I should walk into a car dealership and try to get a loan for a new vehicle?

None of my US Credit transfers over at all? I have a good US History, but it's all under my US Social Security Number, not my Canadian SIN...so this is totally useless, right? I've been using my Visa credit card I obtained with Scotiabank for all of my everyday purchases and have it on auto-pay each month for the balance in full so I build good credit. How long should I do this before attempting to get a loan with a halfway decent rate?

Thank you!

 

[steaky]

What do you mean by "halfway decent rate".

I got my loan for a new vehicle 2 weeks after I got my first Canadian credit card.

 

[Classic Chucks]

You can certainly get a car loan but with much higher rate because you've just landed. Usually, they like to see a good credit history of 18-24 months.

 

[barch88]

What do you mean by "halfway decent rate".

I got my loan for a new vehicle 2 weeks after I got my first Canadian credit card.

What's your rate? How much did you put down and how much did you finance?

 

[NetMecca]

If you can prove you have a job and a reasonable income it should not be difficult to get a car loan. (If you do not have a bad credit score). No credit score is better.

Just go to a dealership, show them your letter of employment / proof of income and see where it leads.

Good luck

 

[sandeepn]

Can some one answer the part of his question regarding transfer of US credit score to Canada? I have a very good Credit score in US and would be moving to Canada sometime later this year or next year.

 

[SpottedDick]

Can some one answer the part of his question regarding transfer of US credit score to Canada? I have a very good Credit score in US and would be moving to Canada sometime later this year or next year.

Keep your two credit scores separate
The same credit bureaus though completely different files.

 

[sandeepn]

Keep your two credit scores separate
The same credit bureaus though completely different files.

Thanks for the info. Wish, I could carry my credit score from US to Canada. Building new credit from scratch is quite a task. Anyways, am happy to go to Canada as is.

 

[next2015]

How about you save a few thousand dollars and buy your self a car - fully paid for, no debt on your books?

Before I'm attacked, let me say: I am well aware of the use and relevance of a credit score and history. However, I discovered a long time ago, you can survive without a credit score/history, which means living without debt, which means living on less than you make. Life is much more fun without debt, without giving your hard earned money to banks in interest. Most people think a credit score means good financial management or a solid financial foundation - wrong!! Its just an indicator of how well you pay your debts, which is why it only goes up with more debt on your books over a longer period of time, which is you losing more money in interest payments that could have gone to your retirement investments like mutual funds or a college fund for your kids.

So, I suggest you save say $5k, get a car on Craigslist or wherever that you can use for as long as you need to save for a better car. Whatever you do, don't buy a brand new vehicle, especially if you choose to get a loan - the math is bad, very bad! It loses so much value before you even pay half the loan amount.

Otherwise, yes, your US credit history is only useful state-side. Mine is zero both north and south

All the best.

 

[mgnlky]

Can some one answer the part of his question regarding transfer of US credit score to Canada? I have a very good Credit score in US and would be moving to Canada sometime later this year or next year.

I have been advised by my US financial planner to not mix Canadian credit scores with US credit scores AT ALL. Rationale is, each time a Canadian entity requests the score, the US score takes a hit (and can drop). Since I won't be using it in the US, this could negatively impact me if I ever move back.

 

[NetMecca]

If you status in Canada, and you have a job, which you can prove, there are several organisations that offer guaranteed finance no matter what (apparently). I suspect interest rates are really high, but you never know.

 

[alok4best]

Dealers might ask you for a higher downpayment, but you should be able to get a car loan. I was able to get a car on lease at the same rate what was offered to everyone else with a 4.5K downpayment, which I was anyway going to make. I had approx 10 months of credit history by then.

 

[alzs-]

How about you save a few thousand dollars and buy your self a car - fully paid for, no debt on your books?

Before I'm attacked, let me say: I am well aware of the use and relevance of a credit score and history. However, I discovered a long time ago, you can survive without a credit score/history, which means living without debt, which means living on less than you make. Life is much more fun without debt, without giving your hard earned money to banks in interest. Most people think a credit score means good financial management or a solid financial foundation - wrong!! Its just an indicator of how well you pay your debts, which is why it only goes up with more debt on your books over a longer period of time, which is you losing more money in interest payments that could have gone to your retirement investments like mutual funds or a college fund for your kids.

So, I suggest you save say $5k, get a car on Craigslist or wherever that you can use for as long as you need to save for a better car. Whatever you do, don't buy a brand new vehicle, especially if you choose to get a loan - the math is bad, very bad! It loses so much value before you even pay half the loan amount.

Otherwise, yes, your US credit history is only useful state-side. Mine is zero both north and south

All the best.

It all depends on what rate you can get and how well you manage your investments. If you get a higher yield on your investments than the loan rate, it is financially interesting to get the loan.

 

[steaky]

How about you save a few thousand dollars and buy your self a car - fully paid for, no debt on your books?

Before I'm attacked, let me say: I am well aware of the use and relevance of a credit score and history. However, I discovered a long time ago, you can survive without a credit score/history, which means living without debt, which means living on less than you make. Life is much more fun without debt, without giving your hard earned money to banks in interest. Most people think a credit score means good financial management or a solid financial foundation - wrong!! Its just an indicator of how well you pay your debts, which is why it only goes up with more debt on your books over a longer period of time, which is you losing more money in interest payments that could have gone to your retirement investments like mutual funds or a college fund for your kids.

So, I suggest you save say $5k, get a car on Craigslist or wherever that you can use for as long as you need to save for a better car. Whatever you do, don't buy a brand new vehicle, especially if you choose to get a loan - the math is bad, very bad! It loses so much value before you even pay half the loan amount.

Otherwise, yes, your US credit history is only useful state-side. Mine is zero both north and south

All the best.

I don't agree. Especially if you can use debts and its interest to reduce your tax bill, debts are fun to keep. And with brand new vehicles, you can enjoy the latest technology money can buy.

 

[BC4life]

How about you save a few thousand dollars and buy your self a car - fully paid for, no debt on your books?

Before I'm attacked, let me say: I am well aware of the use and relevance of a credit score and history. However, I discovered a long time ago, you can survive without a credit score/history, which means living without debt, which means living on less than you make. Life is much more fun without debt, without giving your hard earned money to banks in interest. Most people think a credit score means good financial management or a solid financial foundation - wrong!! Its just an indicator of how well you pay your debts, which is why it only goes up with more debt on your books over a longer period of time, which is you losing more money in interest payments that could have gone to your retirement investments like mutual funds or a college fund for your kids.

So, I suggest you save say $5k, get a car on Craigslist or wherever that you can use for as long as you need to save for a better car. Whatever you do, don't buy a brand new vehicle, especially if you choose to get a loan - the math is bad, very bad! It loses so much value before you even pay half the loan amount.

Otherwise, yes, your US credit history is only useful state-side. Mine is zero both north and south

All the best.

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