Setting up new credit in Canada

[Bincanada]

I'm just starting out my new life as a Canadian, immigrated from the US and so thrilled to make the switch. So far I've been nothing but impressed with the new opportunities and options going forward. I have always felt more at home in Canada, and now that it is my home I couldn't be more happy.

Do any of you have experience with credit and building credit in Canada? I didn't leave the US for this reason, but while I was in the US I had some debt problems and wasn't able to pay off some final debts before moving north of the border. Several of them were medical debts, which I'm so proud that in Canada I'll never experience that problem again!!! I fear that my US credit report will somehow haunt me. Most of these accounts are now over a year old and I am not going to bother worrying with them. But, my hope is that when I have credit checked north of the border it won't pull any US reports. I did put a freeze on my US credit reports before I left, so I should be safe... I worry mostly because I hear TransUnion and Equifax both operate credit reporting agencies in Canada, but do any of you have experience/knowledge if they ever cross reference US accounts? Like I said, I've put a freeze on my US credit reports and I hope that's enough to keep any cross-referencing from ever occurring.

I am not applying for credit yet, but I'm hoping to hear if you guys have had a good experience establishing new credit here in Canada for those of us who have migrated already. I look forward to building a healthy credit file as a new Canadian. I just received my SIN, and I can certainly start applying when I want to. But do any of you have any tips or advice or stories of how long it took you to get a respectable credit card balance, how quickly you qualified for an auto loan, or even became eligible for mortgages?

This is an open discussion, so please provide any stories you guys feel comfortable with!

 

[CanadaNS]

I know that RBC is pretty generous with new Canadians. Look on their website they even have a section for new people in Canada and they don't require a credit check with proof of just landing I suppose. I doubt you'd get the best credit card right away but if you are responsible with paying your card off then you shouldn't have a problem building your credit and getting better credit cards with benefits in the future.

Capitol One Canada is also pretty generous and depending on what they decide you may have to pay anything from 75$-300$ but that would be refunded once/if you close that account.

Your new credit in Canada is credit here. What ever credit you have in the states or else where is completely separate from the credit here in Canada.

 

[CDNPR2014]

i'm from the us and here is what i've learned since being here for 1.5 years as a pr.

your us credit issues will not follow you to canada. nor will your credit rating. this goes for good or bad credit.

when you become a pr your credit starts at 0. getting a bank account will not be an issue. unless a bank offers a credit card to someone with 0 credit while opening an account (i have yet to learn of a place that does this), the only way it seems to build credit is to get a "secured" credit card. most banks will have this and there are credit card companies that offer it. a secured credit card is a card where you have to put down a large deposit in order to use the card. so you basically give the company 300 or 500 or however much to hold while you use the card. using the card and paying it off montly will build your credit. i've been with my bank for over a year and just applied for overdraft protection and was rejected due to not having credit. i have yet to hear of another way to build it besides investing in a secured credit card.

apparently having your name on a mortgage does nothing to build your credit.

 

[markarbet]

I am afraid that US and Canada have an agreement for exchanges of credit histories between two countries. Your bad US credit history might affect your new one in Canada.

 

[Ponga]

I am afraid that US and Canada have an agreement for exchanges of credit histories between two countries. Your bad US credit history might affect your new one in Canada.

Do you have a source for this?


http://www.experian.com/blogs/ask-experian/2013/08/14/u-s-credit-history-will-not-transfer-to-canada/

Unfortunately, your U.S. credit history will not transfer to Canadian credit reporting companies when you move. Each country has its own credit reporting system, with unique systems and different laws regulating them, so the information isn’t shared across borders.

After you move, you will need to build a credit history in Canada with creditors who report to Canadian credit reporting companies. It may be helpful to make copies of your credit reports from each of the credit reporting companies here in the U.S. so that you can show them to potential lenders for consideration.

Talk with your existing creditors. Some may operate in both the U.S. and Canada and might be able to transfer your current U.S. accounts to Canadian accounts, helping you establish a new credit history more quickly.


HSBC offers this service, but I don't believe that it is done automatically.

 

[steaky]

HSBC offers this service, but I don't believe that it is done automatically.

No, HSBC does not. I heard American Express does.

 

[Ponga]

No, HSBC does not. I heard American Express does.

Yes, they do:
https://www.hsbc.ca/1/2/personal/new-to-canada/moving-to-canada/credit-history

 

[Bincanada]

I know that RBC is pretty generous with new Canadians.

Thank you for the recommendation, it does appear that RBC has immigrant services. It seems all the major banks have some type of program now that I've researched more. You just have to mention that you're an immigrant and they will go from there.

i'm from the us and here is what i've learned since being here for 1.5 years as a pr.

your us credit issues will not follow you to canada. nor will your credit rating. this goes for good or bad credit.

when you become a pr your credit starts at 0. getting a bank account will not be an issue. unless a bank offers a credit card to someone with 0 credit while opening an account (i have yet to learn of a place that does this), the only way it seems to build credit is to get a "secured" credit card. most banks will have this and there are credit card companies that offer it. a secured credit card is a card where you have to put down a large deposit in order to use the card. so you basically give the company 300 or 500 or however much to hold while you use the card. using the card and paying it off montly will build your credit. i've been with my bank for over a year and just applied for overdraft protection and was rejected due to not having credit. i have yet to hear of another way to build it besides investing in a secured credit card.

apparently having your name on a mortgage does nothing to build your credit.

This is good news to me! Glad to hear from a real world experience on this. I don't mind building from scratch, I am responsible with credit. Once I get started it'll go smoothly.

Do you have a source for this?


http://www.experian.com/blogs/ask-experian/2013/08/14/u-s-credit-history-will-not-transfer-to-canada/

Unfortunately, your U.S. credit history will not transfer to Canadian credit reporting companies when you move. Each country has its own credit reporting system, with unique systems and different laws regulating them, so the information isn’t shared across borders.

After you move, you will need to build a credit history in Canada with creditors who report to Canadian credit reporting companies. It may be helpful to make copies of your credit reports from each of the credit reporting companies here in the U.S. so that you can show them to potential lenders for consideration.

Talk with your existing creditors. Some may operate in both the U.S. and Canada and might be able to transfer your current U.S. accounts to Canadian accounts, helping you establish a new credit history more quickly.


HSBC offers this service, but I don't believe that it is done automatically.

Hey, straight from the source. I like it. That pretty much explains it all. I've got a new life in every way, new country, fresh credit board to build on, and a future that is separate from the US. I like!!!

Thanks to you all who put in responses here, and especially the personal stories/experiences.

 

[Ponga]

It might not be so easy to hide bad credit from abroad after all:
http://canada.creditcards.com/credit-card-news/newcomer-cards-choose-and-use-wisely-1268.php

---
1. Decide if you really need a credit card.
One common misconception is that credit cards are prerequisite to establishing credit in Canada. Paul Le Fevre, director of operations at Equifax Canada, says that Equifax creates a credit file as soon as you open a bank account, regardless of whether a credit card is involved. Canadian financial institutions can request and obtain a credit report from your origin country directly through Equifax.
---

Why wouldn't they?