CIBC bankg - is it good?

[browntrout]

As a newcomer to Canada, you can not expect that you will get a credit card right away so easily. First settle, work at the same job for some months, show that your account is in good standing and you have regular income. Then apply for a credit card.

quicker way, do a savings against credit for 6 months, then get a credit card

http://www.canadavisa.com/canada-immigration-discussion-board/-t174697.0.html

 

[Dejaavu]

TD when I was working there had a program for newcomers to Canada. If newcomers proved their immigrant/pr status, and had no credit history in Canada they could qualify up to 1k in a basic credit without security. I am not sure if they still have it. It is worthwhile to try.

 

[actonis]

I wasn't thinking about credit card.
I am more interested about debit card that I can use to buy things online, to pay for vouchers online, to order things from amazon, ebay etc?
If I open normal bank acount, in any bank with no prior credit history I am going to get this kind of card?

 

[Dejaavu]

Yes you will get a debit card with a checking account.

 

[actonis]

Can I use it to buy online?

 

[browntrout]

Can I use it to buy online?

yes

 

[Dejaavu]

as long as it is a debit visa it should be fine. most debit cards have daily/weekly limits on online shopping. you will find that out from the bank when they issue the debit card.

 

[frotenacs]

as long as it is a debit visa it should be fine. most debit cards have daily/weekly limits on online shopping. you will find that out from the bank when they issue the debit card.

I opened a chequing account with RBC. The debit card doesn't have visa or mastercard. It cannot be used for online shopping. Honestly, I do not like the $14.95/mo service fee either. Unfortunately I use this account for salary deposit, hence cannot change it, at least until I find a better banking option.

 

[Dejaavu]

you can open an account with TD. TD has a debit visa. Just provide a direct deposit form to your employer. You can get the deposit form from the bank where you opened the account. TD also might have an unsecured credit card for newcomers if they never had credit history in Canada. The limit could be as high as 1000$; The only downside is TD like RBC doesn't have free checking accounts. All big five banks do not have free checking accounts.

Maybe you can open a bank account in a credit union or ING or PC Financial and get your direct deposit there and you will save about 180$ a year on banking service charges.

Then you can get a TD credit card/visa for $1000 unsecured and you can build your credit in Canada and have the convenience of having a visa. You can set up a bill payment to pay your visa from a free bank account from a credit union, ING or PC financial.

As noted before, I used to work as an account manager/financial advisor at TD.

 

[frotenacs]

Maybe you can open a bank account in a credit union or ING or PC Financial and get your direct deposit there and you will save about 180$ a year on banking service charges.

Then you can get a TD credit card/visa for $1000 unsecured and you can build your credit in Canada and have the convenience of having a visa. You can set up a bill payment to pay your visa from a free bank account from a credit union, ING or PC financial.

Probably I will go with PC financial for chequing services for the following reasons

1) Save those $180/year as fees that big five banks charge.
2) Use extensive CIBC ATM network for withdrawals.
3) With the chequing account I can open a high interest savings account with 1.80% interest rate.
4) Online bill payments (rent, mobile, utilities, etc)

Next, I need a credit card. Considering I have no credit history in Canada it will be difficult to get one. I am thinking of getting a secured card with TD, by depositing $1000. This will give me a limit of $1000. One question- to obtain a secured credit card in it mandatory to open a chequing account with them?

 

[Leon]

Even for an unsecured credit card, you do not need to have an account at the bank. My first credit card in Canada was a BMO card and I never had an account there.

Your idea sounds good. Open a free account at PC financial for your banking. You can try and see if they will give you a credit card as well. If not, then you can apply for a secured card at TD.

 

[Dejaavu]

I agree with you Leon.

TD has a program called Bell for new immigrants and they can provide up to 1000$ credit card unsecured if a pr has no credit history in Canada. That as true as of spring 2013 when I worked there last. No need to secure $1000 when there are unsecured credit card options for newcomers.

 

[Dejaavu]

No it is not necessary to open a bank account.
When you go to TD, just make sure you have your Driver's Licence or Passport and your Social Insurance number. They will make an application for credit card and it will be declined immediately since you do not have credit history in Canada. Then the branch manager can overrride the decision and you can be approved for $1000 in unsecured credit card in Canada (it could even be $1500. It has a grace period of 21 days. If you pay it back in full within 21 days you won't be charged interest and your credit score will go up and they will offer increases in about a year or so.

If you do secured credit card, you will need to open a bank account such as savings with only 1.10% annual interest and it will be locked for 3 years. I would strongly urge to get unsecured credit card if they are still offering. TD wants to have new clients and they are doing this program for this reason. They know that once they get you a credit card, most likely you will come to them for a mortgage down the road plus other products such as mutual funds, lines of credits etc.

Feel free to ask more questions as I am familiar with banking and have experience working in a bank in Canada particularly at TD.

 

[actonis]

Dejaavu can I get visa debit card with TD without opening an account with them?
Can I waive paying for the monthly account in TD if I deposit some amount in the bank?
Is PC secure bank to receive your salary there?
With the card that you will get from PC can you buy online?
Thanks

 

[Dejaavu]

To get a debit visa card you will need to open a checking account at TD and minimum to maintain to waive the monthly fee of $10.95 is $2500 and that account includes 25 transactions. IF you want unlimited transactions you will need an Infinity account and you need to maintain $3500, otherwise the monthly fee is $14.95. Mind you, if your balances goes under that minimum even once you will be charged the monthly fee.

As for PC, it is safe to get a direct deposit. However, I do not think PC debit card has a visa platform on it; they do not provide a debit visa card. It is only for Interac payments which is a Canadian payment system.

As I mentioned early, I advise my friends and family who are new to Canada to get a credit card visa with TD as TD was providing unsecured credit cards for newcomers up to $1500 limit and open a no fee account at either a credit union or ING or PC Financial. You can get pay off your credit card balances as a bill payment from PC Financial/ING or credit union account. Also you will establish credit history in Canada which is very important.