I have a question, as a newcomer how can I build good credit history if it's one of the requirement to renting. I am hoping to stay with friends for the first couple of weeks and then renting but it seems impossible as landlords are requiring a credit history report. Please advise.
Re locating to Toronto in July 2017
- Thread starter mawcanada
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The only way around is to get a credit card ASAP then start using and in a few months you will have a credit score. During that time you can rent a basement where they usually dont ask for credit score but they do ask if you have a valid job.
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I am also planning to relocate to Toronto in July (if PR application successful). Do you have an American Express card in the country you live? You can look for the AMEX global transfer program and get an AMEX card in Canada based on your home country credit history.
Most of the big 5 banks also have newcomers packages which include a credit card which you can start to use to build some credit.
Most of the big 5 banks also have newcomers packages which include a credit card which you can start to use to build some credit.
These are some lessons I learnt while in US about the credit score, I am assuming this would help in Canada as well. In my opinion, this will work better if you are landing first and moving to Canada later. Get your SIN first and open up a bank account. You'll need an address, use your friends / relatives (trustworthy people) address if you can. Almost every bank in CAN has some kind of deal for the new comers such as no fee bank accounts, $1000 credit card and etc. Your credit score will improve just by having a credit card and even if you don't use it. Credit bureau uses credit to balance ratio as one of the criteria. Given you don't use the while you are away, your credit - balance ratio will look good, along with that you'll also build the the length of your credit. Hold on to the first opened credit card as long as you can and don't close that account.
mawcanada said:
Actually, if you intend to rent from rental companies, they only require a proof of funds from your bank. This is what I was told all the time as I was checking apartment units. There was also a time when a residence manager asked for a guarantor so he could approve an application. A guarantor has to have a stable status in Canada (good job, good salary). Though, your friends may be uncomfortable with this because a guarantor essentially agrees that in case of your non-payment, he will take responsibility.
If you happen to like a place being leased by an individual property owner, this is when they ask for proof of income, reference letters, and credit check. No documents, no lease.
I am renting a furnished basement suite in Toronto right now. And I am looking to transfer the lease. The lease is until September 2017. If you are interested, I can send you more details about the apartment (inc. photos). You can consider staying for 3 months (July-Sept)--it will be much cheaper than Airbnb as the rental rate is based on long-term stay.
Let me know! Good luck!
hotwind said:
FYI - Many places on Airbnb significantly discount for long term stays as well. So a long term stay at an Airbnb can end up being the same (or even less) than a furnished long term rental.