U.S. Loans for Canadians: How to Get a Loan on a TN Visa

Immigrants who lack a credit history in the United States may have difficulty qualifying for a loan from an American bank, and this includes Canadian citizens. Even a TN visa holder may get rejected for loans because of the risk associated with their temporary status.

Other U.S. lenders are filling this gap and offering loans to qualified noncitizens, and this article discusses loans for Nafta professionals.

What is a TN Visa?

The TN visa was created along with Nafta as a special category of worker visa between the U.S., Mexico, and Canada. Canadian nationals who are classified as TN visa workers, also called Nafta professionals, can enter the United States and work without having formal visa status. In other words, for Canadian Nafta professionals no actual visa is necessary. Instead, Canadians only have to establish eligibility for TN status with a U.S. Customs and Border Patrol officer at the port of entry when they seek admission to the U.S.

To establish eligibility for TN visa worker status as a Canadian citizen you must present the following documents at the port of entry:

• Proof of your Canadian citizenship
• A letter from your prospective or current American employer detailing the type of work you will be doing in the U.S., your reason for employment, the length of your stay, and your qualifications for the job, including education
• An evaluation of your credentials, if necessary, along with the payment of any fees required for entry

American employers can also file on behalf of a Canadian citizen they wish to hire, by filing a Form I-129, Petition for Nonimmigrant Worker. If the United States Customs and Immigration Service (USCIS) approves the petition then you will present the Approval Notice for Form I-129 at the port of entry when you seek admission to the U.S., along with proof of Canadian citizenship.

Canadian nationals with TN nonimmigrant status may stay in the country for up to 3 years, at which point they will need their status renewed by the USCIS.

Are There U.S. Loans for Nafta Professionals?

Yes, Canadian Nafta professionals can take out a loan in the U.S. While there aren’t specific loans for Canadians in the U.S., Canadians can qualify for personal loans from an American lender.

Personal loans are easy to obtain and are typically unsecured, meaning you do not have to put down any collateral to obtain the loan. Each lender has a different criteria of qualifications, with credit score and income as the most common focus. If accepted, you will qualify for an interest rate, and make monthly payments on your loan over an agreed-upon term length until the loan is paid back.

4 Reasons a TN Visa Holder Might Need a Loan in the U.S.

A personal loan for Canadians in the U.S. can be tremendously valuable to TN visa holders, especially if they have some sort of urgent need. The following sections detail a few common reasons that TN visa holders seek loans in the U.S.

To Build Credit in the U.S.

Building credit can take a very long time and involves using credit and paying it off in a timely matter. Taking out a personal loan is one way that you can speed that process up. If you are careful about making payments on time and pay it off in full, then you will get access to more credit in the future.

To Pay a Rental Deposit

Nafta professionals often need to pay hefty deposits on housing when they arrive in the country. Not everyone has this cash on hand, and a personal loan can help cover the gap in funding so you can secure housing.

To Buy a Car

Workers in the U.S. will need reliable transportation to work, and the scant public transportation in most American cities often makes cars a necessity. The funds from a personal loan can help cover the cost of a car.

To Put a Down Payment on a Mortgage

If you feel secure enough in your employment to settle down in the U.S., you can purchase a house. Taking out a mortgage requires a down payment, however, typically ranging between 3% and 20%. With the funds from a personal loan, you can put the necessary cash down and purchase a home.

Why U.S. Lenders Don’t Like to Work with Immigrants

Immigrants need access to credit like everyone else, but lenders often discriminate against immigrants and deny them credit. There are a few reasons for this:

• Immigrants usually don’t have a credit history in the U.S.
• Immigrants may be forced to leave the country at any time due to changes in visa status
• Lenders prefer that applicants have a cosigner, which is difficult for immigrants to get in a foreign country

All of these factors lead lenders to deem immigrants as higher risk investments, but there are lenders that aim their services at specifically at immigrants as well.

How to Get a Stilt Personal Loan as a Canadian on a TN Visa

Stilt is an online lender headquartered in San Francisco, California, that has disbursed millions of dollars in loans to thousands of immigrants, including loans for Canadians in the U.S. You can take out a loan with Stilt by following a few simple steps:

• Complete an application: First, you fill out an online application detailing the amount that you are seeking and authorize a soft credit-pull. Stilt will evaluate your income, employment history, education, and other factors, and respond within 24 hours.
• Receive a decision: If your application is approved, you will qualify for an amount and interest rate. From there, you can choose from a range of term lengths, and then sign a promissory note agreeing to the terms of the loan.
• Start making payments: Once the note is submitted, the funds will be transferred into your account and you can start making payments.

Conclusion

A personal loan for Canadians in the U.S. can help Nafta professionals start building their life after finding employment. Lenders like Stilt take a holistic approach to determine eligibility that gives TN visa workers an opportunity to qualify for an affordable interest rate.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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