Credit in a New Country
A Guide to Credit in Canada
Getting Started
Many Canadians don't have credit histories because they haven’t established credit with traditional lenders. These consumers may rent their homes or apartments, use cheque cashing outlets for payday loans, or buy their furniture and appliances from rent-to-own stores. There are efforts underway to give these consumers some “credit” for paying those kinds of bills on time.
Getting Your First Credit Card
To get your first credit card, you may need the following:
- Valid Social Insurance number
- Proof of your address, such as a copy of a utility bill in your name
- Proof of income such as a copy of recent pay stubs or tax return
- A chequing and/or savings account in your name. Every creditor has different requirements, so be sure to ask about the lender’s minimum requirements before you apply.
Students
If you are a university or college student, you may want to apply for a student credit card. These cards typically do not require an established credit history or strong income. Applications are often mailed to students or available on campus.
Social Insurance Numbers
Generally, to get a major credit card or other loans, you will need a valid Social Insurance number first. For information on obtaining a Social Insurance Number go to www1.servicecanada.gc.ca. You can also visit a local Service Canada office. You can usually get a Social Insurance number as long as you are eligible to work in Canada.
Secured Credit Cards
One of the fastest ways to get a credit card and establish a credit history can be a secured credit card. With a secured card, you place a deposit with the issuing institution. You will get a MasterCard or Visa card with a credit line that is usually equal to your deposit. You can use the card anywhere that MasterCard or Visa cards are accepted. Ideally, you should choose a secured card that reports your monthly payment history to all major credit-reporting agencies. Visit http://www.fcac-acfc.gc.ca in the Consumer Section on Credit, Loans, and Debt.
