Bank account for new comer with no fees/minimum balance?

[knowledge101]

I disagree. I have not provided any incorrect information and I have backed up my knowledge and experience with relevant links.

http://www.magnifymoney.com/blog/building-credit/should-you-carry-a-balance-on-a-credit-card/

"A credit card myth exists in our society simply to befuddle new credit card users. Parents tell children. Friends tell each other. Managers lecture employees. “You should carry a balance on a credit card,” they announce in authoritative voices. “It’s good for your credit,” they proclaim. It’s so common, we’re frequently asked, “should you carry a balance on a credit card?”

NO! They’re wrong. I don’t care if they’re your mother, father, banker, financial advisor, manager or best friend. There is absolutely no need for you to carry a balance on a credit card."

https://www.nerdwallet.com/blog/finance/credit-score-does-carrying-a-balance-help/

"One of the cardinal rules of credit card use is that you should never carry a balance from month to month. This is an almost sure-fire way to rack up double-digit interest on your spending."

http://blog.readyforzero.com/does-carrying-a-balance-help-or-hurt-your-credit-score/

"The truth: you don’t have to carry a balance to have a great credit score. Paying off your balance in full each month (without carrying it over to the next month) can help you strengthen your score and also saves you from paying interest charges"

https://bettermoneyhabits.bankofamerica.com/en/credit/5-facts-about-credit-cards

"Myth: You must carry a balance on your credit cards to build a credit history.

Fact: Credit cards are great tools for building your credit history, and you don’t need to carry an unpaid balance to do so. Your best strategy is to use your credit cards and pay off the bill in full each month, so you keep your overall debt-to-credit limit ratio low."

https://www.creditkarma.com/article/carrying-a-balance-good-or-bad-92415

"You don't need to carry a balance to keep a card active

Brewer thinks that some people may be misinterpreting the advice they're given -- confusing "showing lenders you're using credit" with "having a balance." While regular use and timely repayments help show lenders that you're a responsible borrower, consumers can prove their creditworthiness without having to pay a penny of interest.
Keeping a card active is important, but there are many ways to do this without carrying a balance. One of the simplest may be to use your card to automatically pay a small recurring expense - such as a subscription to Netflix - that you pay off monthly. Some checking accounts can be set up to pay the credit card bill in full when it's due, automating the whole process."

 

[xpressentry]

Use your credit card but dont exceed your credit limit. Also, pay back in full. If you pay back in full, you wont accrue any interest and you will show lenders that you are a responsible borrower.

The ratio is how much you have vs how much you use. Example is if you have a credit limit of $5000 and you use the entire $5000 or close each month, it is not good.

Lenders have parameters with credit referencing agencies. I have checked my credit report with experience, equifax and call credit. There are certain things that have a positive impact and some have negative.

Using credit: positive
Paying in full: positive
Exceeding limit: negative
Maxing out each month: negative
Using between 40% to 70% of available credit limit: positive
Paying minimum balance: negative and you pay high interest
Balance transfer: neutral (may or may not have interest)
Cash withdrawal: negative and very very high interest

 

[knowledge101]

Use your credit card but dont exceed your credit limit. Also, pay back in full. If you pay back in full, you wont accrue any interest and you will show lenders that you are a responsible borrower.

The ratio is how much you have vs how much you use. Example is if you have a credit limit of $5000 and you use the entire $5000 or close each month, it is not good.

Lenders have parameters with credit referencing agencies. I have checked my credit report with experience, equifax and call credit. There are certain things that have a positive impact and some have negative.

Using credit: positive
Paying in full: positive
Exceeding limit: negative
Maxing out each month: negative
Using between 40% to 70% of available credit limit: positive
Paying minimum balance: negative and you pay high interest
Balance transfer: neutral (may or may not have interest)
Cash withdrawal: negative and very very high interest

All correct but using <30% credit limit is ideal (and ideally <10%). Anything above 10% starts to hurt your credit score and >30% will really impact your score. It is exponential once you get beyond 30%.

 

[xpressentry]

Credit referencing agencies monitor how much money comes in from business accounts to how much money gets used in credit. Any money coming in from the goverments social security system brings down your score drastically.

 

[andrews65]

BMO. The branch at Elmvale, Ottawa opened an account for me without needing to see my copr. No fees for a year for new immigrants and they gave me an unsecured credit card immediately despite me having no Canadian credit history.

 

[jonnclk22]

yes , that's true but that's a small price to pay for building up credit history. Your first credit card would start charging interest straight away but once you have sufficient credit history , you can get second credit card with 0% APR for 15-21 months. You won't accrue interest on balances during 0% APR months.

Few years back when I was trying to build my credit history in USA , I kept my credit card utilization around 5% and it worked like a charm.

This is BAD BAD advice. Pay your card in full every month and you're fine. You'll build credit history regardless.