How To Build Credit Score As An Immigrant To Canada
How To Build Credit Score As An Immigrant To Canada
Posted on June 4, 2021
Did you know that credit scores don’t move with you when you emigrate? Most people don’t and it comes as something of a surprise when you arrive and have to build credit score as an immigrant all over again.
Our Milton auto loan team worked with some new arrivals last week and had this very conversation. It was so interesting that they decided to put this blog post together to help more new arrivals.
How to Build credit Score as an Immigrant to Canada
It’s a shame that credit scores aren’t global even though the credit bureaus are. Nevertheless, we are where we are so let’s start you on the journey.
Get a Canadian bank account
Your first stop is to get a Canadian bank account. Nothing much can happen without one so this should be your first port of call.
You can use your existing bank if it has a presence in Canada or use a national bank.
Your existing bank will know you so may offer more advanced accounts. National banks offer specific accounts for immigrants so you should always be able to find one.
Get a credit card
Some of those banks above will offer limited credit cards as part of the newcomer packages. If the bank you join offers a credit card, get one.
Otherwise, use a secured credit card. These will require a deposit equal to the credit limit but work in exactly the same way.
Use the credit card for your usual expenses and set up automatic payments from your Canadian bank account to cover the minimum payment each month.
Don’t depend on that minimum payment though. Aim to pay it off in full each month.
Get a phone
Nothing much in life happens without a phone, so get this next. Some national carriers don’t require credit checks while others do.
Make sure to choose a carrier that reports your monthly payments to the credit bureaus to help build your credit report.
Get a Milton auto loan
Once you have a bank account and 3-6 months of on-time payments, you are beginning to build a presence in your new home country.
You can now apply for an auto loan if you need one. You’ll need a large deposit to access lower rates but our Milton auto loan team have expertise in securing competitive car loans to new arrivals to Canada.
You will be paying higher rates than people who have been here longer, but with a year or two of on-time payments, you should have built a sufficient credit score to access standard loans at lower rates.
Credit in Canada
The same rules apply here in Canada as they do in your country of birth. Always pay on time, never spend more than you can afford to repay, make your choices carefully and use automatic payments wherever possible to ensure you never miss a bill.
Over time your credit score will gradually rise until you’re regarded as a standard risk. Then you’ll open the door to the full range of financial products we all get to enjoy.
If you need an auto loan in Milton, contact our team who could be more than happy to help.
Contact Unique Chrysler for help, advice and competitive Milton car finance and leasing.
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