Credit in Canada

[jancath410]

Finally!!!! Something I might be able to give additional information on. I work for a bank and was going through some of the questions here.

First, US credit rating nor any credit rating in the world are all independent of each other. So if you have a bad credit anywhere else, you can start over here in Canada and hopefully keep the credit rating good.

As for the prefered banks, these are the major banks in Canada: Toronto Dominion (TD Canadatrust), Canadian Imperial Bank of Commerce (CIBC), The Bank of Nova Scotia (Scotiabank), Royal Bank of Canada (RBC). These are the major players but of course there are small banks as well.

For credit cards, each bank has a program for new comers. However, Scotiabank has been the one who is more aggressive. There might be banks who would ask for collateral or deposit to have a credit card available to you. It really depends on the situation and the bank.

A bank account can be opened or can be joint whether you are a PR or not as long as you have valid ID.

Hope the info helps.

 

[jomarcabiles]

i have been trying to get a credit card but nobody approves me,,,its kinda hard since everyone is asking for a deposit,,but im not in a hurry to build a credit history ...

 

[jancath410]

i have been trying to get a credit card but nobody approves me,,,its kinda hard since everyone is asking for a deposit,,but im not in a hurry to build a credit history ...

It really depends on your situation. The fastest way are those kiosk credit card because they approve almost everyone but interest rate is a killer but if you pay off your balance before the due date, interest rate will not matter and will actually improve your credit a lot.

 

[sbwv09]

Banks will use your US credit score to get you a mortgage though.

Is this true? I was told by our banker that it doesn't impact anything in Canada.

 

[jancath410]

Is this true? I was told by our banker that it doesn't impact anything in Canada.

Depends on which bank. I am familiar with TD and Scotia. Scotiabank will only check US credit if the applicant is not a Canadian Resident and would like to get a mortgage on a vacation property in Canada. TD will also check US credit if one of the applicant is not a PR either. To be honest though, if you have already established a canadian credit record, they are not going to dig any further (it's more work for us!) That is why it's important to establish as soon as you land.

 

[rjessome]

Finally!!!! Something I might be able to give additional information on. I work for a bank and was going through some of the questions here.

First, US credit rating nor any credit rating in the world are all independent of each other. So if you have a bad credit anywhere else, you can start over here in Canada and hopefully keep the credit rating good.

As for the prefered banks, these are the major banks in Canada: Toronto Dominion (TD Canadatrust), Canadian Imperial Bank of Commerce (CIBC), The Bank of Nova Scotia (Scotiabank), Royal Bank of Canada (RBC). These are the major players but of course there are small banks as well.

For credit cards, each bank has a program for new comers. However, Scotiabank has been the one who is more aggressive. There might be banks who would ask for collateral or deposit to have a credit card available to you. It really depends on the situation and the bank.

A bank account can be opened or can be joint whether you are a PR or not as long as you have valid ID.

Hope the info helps.

Haha! Great info.

After my husband landed as a PR and got a job, TD gave him a credit card with $1000 limit, unsecured, even though he was only working part-time and earning a low wage. He also opened a chequing and savings account with them but I don't know if that made a difference but it might have.

Scotiabank is all over the radio and TV with there promotion for newcomers to Canada. But we went to TD because I've been banking there for eons.

 

[suenim]

Haha! Great info.

After my husband landed as a PR and got a job, TD gave him a credit card with $1000 limit, unsecured, even though he was only working part-time and earning a low wage. He also opened a chequing and savings account with them but I don't know if that made a difference but it might have.

Scotiabank is all over the radio and TV with there promotion for newcomers to Canada. But we went to TD because I've been banking there for eons.

Maybe opening the account with them helped. It's when I opened my student account with TD, the offered me a credit card. I prefer TD even though I have RBC as well. I rarely use RBC.

 

[jancath410]

The banks are always looking at full relationship with their clients. The more products you have the more they like you...hehehehe...because you are more profitable. The advantage with you is they maybe sometime more receptive to your requests. So opening a chequing and savings account will help you in the future. It's hard to find a good banker these days because they keep changing their employees but it's good to have one

 

[BeShoo]

As for the prefered banks, these are the major banks in Canada: Toronto Dominion (TD Canadatrust), Canadian Imperial Bank of Commerce (CIBC), The Bank of Nova Scotia (Scotiabank), Royal Bank of Canada (RBC). These are the major players but of course there are small banks as well.

You forgot BMO Bank of Montreal. Don't tell me that they're no longer a major bank!

To the best of my knowledge, CIBC still has the most branches and RBC has the most assets. As for which one people like, it seems that lots of people hate nearly all of them.

Also, in Quebec (at least the Outaouais region), National Bank (Banque Nationale du Canada) and Caisses Desjardins (or Desjardins Credit Union) seem to be highly preferred over the national Big 5. I found that I couldn't renew my driver's license or pay for a traffic ticket (can't remember clearly which) at a bank if I didn't have an account at BNC. I might have misunderstood and this may be different now.

 

[jancath410]

You forgot BMO Bank of Montreal. Don't tell me that they're no longer a major bank!

Haha! I knew I forgot one more!

 

[fenna1]

Hi guys,

This has been something I have been wondering myself and this thread is very helpful.

So what I can understand is that we can open accounts just through showing valid ID and this starts to build our new credit scoring and our credit rating in the UK has no significance?

 

[can_usa_97]

Is this true? I was told by our banker that it doesn't impact anything in Canada.

Well I don't know 100%, but I was told so by 3 brokers. The banks themselves, weren't very helpful in replying to me.

 

[jancath410]

Hi guys,

So what I can understand is that we can open accounts just through showing valid ID and this starts to build our new credit scoring and our credit rating in the UK has no significance?

Yes, you may open an account with valid ID's but it does not build your credit score. Only credits such as Credit Cards, Overdraft Protection, Lines of Credits, Loans, etc. will help you build credit.

Your credit rating in UK has no significance. Banks access credit rating through Equifax or Trans Canada Union. These are the 2 sources that financial institutions report their clients' to. Banks more frequently than others.

 

[SaugaBoss]

how long does it take new immigrants to canada to build credit in order to apply for a mortgage or car?

 

[jancath410]

how long does it take new immigrants to canada to build credit in order to apply for a mortgage or car?

I would say about 3-6 months. Major banks report your record at least every month. Store cards are less frequent.