Creating Credit History before moving for good

[angelynn_00]

Hi All,

I would like to know if there is anyway we can start a credit history for Canada before moving for good. I have already done my soft landing in July 2017 and have my PR card. I live in India and plan to move around April - May of 2018 for good. I have my Indian accounts in Icici bank. Icici has a Hello Canada account service, but to activate the account (with most banks), I have to be physically present in Canada. Is there a way to get my credit score started before I go so that I can have a history prior to moving?
Thanks in advance.

 

[steaky]

In other words, you want to consider being taxed on your worldwide income before moving to Canada for good.

 

[Rob_TO]

In other words, you want to consider being taxed on your worldwide income before moving to Canada for good.

Taxable income has nothing to do with credit score

Hi All,

I would like to know if there is anyway we can start a credit history for Canada before moving for good. I have already done my soft landing in July 2017 and have my PR card. I live in India and plan to move around April - May of 2018 for good. I have my Indian accounts in Icici bank. Icici has a Hello Canada account service, but to activate the account (with most banks), I have to be physically present in Canada. Is there a way to get my credit score started before I go so that I can have a history prior to moving?
Thanks in advance.

Credit score in Canada can only be improved (or even started in the first place) by taking out actual credit products in Canada. So you need to open Canadian credit cards, phone account, line of credit, mortgage, car loan/lease, etc etc. Then your credit score will increase as you make regular on-time payments, and the longer the accounts stay open. If you can't open any of these types of accounts when not physically in Canada, then sounds like you'll be starting from scratch for a credit score when you arrive.

Also note a regular chequing account at a bank is not a credit product, so would have zero impact on your credit score. You would need to add some credit product (like overdraft protection or a line of credit with that bank) to make it start affecting your credit score.

 

[angelynn_00]

Taxable income has nothing to do with credit score



Credit score in Canada can only be improved (or even started in the first place) by taking out actual credit products in Canada. So you need to open Canadian credit cards, phone account, line of credit, mortgage, car loan/lease, etc etc. Then your credit score will increase as you make regular on-time payments, and the longer the accounts stay open. If you can't open any of these types of accounts when not physically in Canada, then sounds like you'll be starting from scratch for a credit score when you arrive.

Also note a regular chequing account at a bank is not a credit product, so would have zero impact on your credit score. You would need to add some credit product (like overdraft protection or a line of credit with that bank) to make it start affecting your credit score.

Thanks Rob. Since I am planning to move in a couple of months am ok to pay taxes on international money if it benefits me from building my credit history earlier. I do plan to buy and take actual credit in Canada while I am in my home country itself...and the money gets repaid from my account. But to get a credit card and start credit products, I need to open a savings/chequeing account. Hence asking, if there is a way to get an bank account activated without being physically present? Or if there are any other options I may have?

 

[steaky]

Taxable income has nothing to do with credit score



Credit score in Canada can only be improved (or even started in the first place) by taking out actual credit products in Canada. So you need to open Canadian credit cards, phone account, line of credit, mortgage, car loan/lease, etc etc. Then your credit score will increase as you make regular on-time payments, and the longer the accounts stay open. If you can't open any of these types of accounts when not physically in Canada, then sounds like you'll be starting from scratch for a credit score when you arrive.

Also note a regular chequing account at a bank is not a credit product, so would have zero impact on your credit score. You would need to add some credit product (like overdraft protection or a line of credit with that bank) to make it start affecting your credit score.

But doing what you had suggested, would establish residential ties in Canada. It is what I'm talking about. And OP is okay about it if that helps her building credit history earlier.

 

[Rob_TO]

Thanks Rob. Since I am planning to move in a couple of months am ok to pay taxes on international money if it benefits me from building my credit history earlier. I do plan to buy and take actual credit in Canada while I am in my home country itself...and the money gets repaid from my account. But to get a credit card and start credit products, I need to open a savings/chequeing account. Hence asking, if there is a way to get an bank account activated without being physically present? Or if there are any other options I may have?

I have no idea if you can open a bank account in Canada if not physically present in Canada. I assume you can't, but maybe others can confirm.

You may also find it's very hard to open a credit card account with zero credit or Canadian income history. Look for the "new immigrant" offers from some banks.

But doing what you had suggested, would establish residential ties in Canada. It is what I'm talking about. And OP is okay about it if that helps her building credit history earlier.

Ah ok. I thought you were referring to voluntarily declaring international income in hope it would improve credit score.
Residency would be up to CRA to decide as there is no set definition i.e. 1 credit account may not be seen as enough of a residential tie to deem one a resident for tax purposes, but 2-3 accounts might. Lots of this is discretionary.

 

[diliprath]

I do not see how you can start having credit before moving to Canada. However, if you are looking to create credit so that you can right away get a credit card and use for day to day activities, then that has a solution. You can get a credit card without credit history also. The best way is get a secured credit card from whatever bank you open your bank account by keeping some money aside with them. Within months you should start seeing your credit built up and then you will be in line for all credit purposes.