Building credit when you're new to Canada

Moving to Canada often means starting your credit history from zero. In most cases, the credit record you built in another country doesn’t automatically transfer to Canada’s credit bureaus, even if you had excellent credit before. That can be frustrating when you’re trying to rent an apartment, set up a phone plan or finance a car.

The good news: a Canadian credit history can be built deliberately, one step at a time. Here’s a practical plan.

Step 1: Set up your everyday banking

Open a chequing account with a Canadian financial institution and use it for your income and bills. Bank accounts themselves generally don’t appear on your credit report, but a relationship with an institution can make it easier to get your first credit product, and you’ll need an account to make payments.

Step 2: Get your first credit product

To have a credit score at all, you need at least one credit account that’s reported to a credit bureau. Common starting points for newcomers include:

• Newcomer credit card programs offered by some banks, which may consider your immigration status and employment instead of Canadian credit history.
• Secured credit cards, where a security deposit sets your limit. They’re often available to people with no history at all. See how a secured card deposit works.
• Credit builder loans, where you make regular payments and receive the funds at the end of the term. See secured card vs credit builder loan.

Before you choose, ask whether the account is reported to Equifax and TransUnion, the two main credit bureaus in Canada. An account that isn’t reported won’t help you build a credit history.

Step 3: Use a little, pay on time, every time

Payment history is the most important part of your credit score. A simple routine works well:

1. Put one or two small, predictable expenses on your card, like a phone bill or a streaming subscription.
2. Set up automatic payments for at least the minimum, so a busy month never becomes a late payment.
3. Pay the full statement balance whenever you can, to avoid interest.
4. Keep your balance under 30% of your limit, as FCAC suggests. Our credit utilization guide explains why.

Step 4: Check your credit report after a few months

Once your first account has been open for a few months, get your free credit reports from Equifax and TransUnion. Check that your name, address and accounts are correct and that on-time payments appear as on time. FCAC’s guide explains how to get your report and score.

If you find a mistake, contact the credit bureau to have it corrected. Checking your own report doesn’t affect your score.

Step 5: Be patient and apply selectively

Each application for credit can add a hard inquiry to your report, and several in a short period can lower your score. Space out your applications and apply for products you’re likely to qualify for. Over time, as your history grows longer and stays positive, more options will open up to you.

Watch out for

• “Credit repair” services that charge fees and claim they can transform your score quickly. No one can remove accurate information from your report.
• High-cost loans marketed to newcomers. Compare the total cost before you borrow.
• Unsolicited calls or messages asking for your banking details or identification. Legitimate lenders won’t pressure you.

How Evolve Capital Credit fits in

We’re designing our secured credit card and Credit Builder Loan with newcomers in mind: clear explanations, no jargon and no judgement. Neither product is available yet, and our eligibility criteria, including requirements for newcomers, are still being finalized.

Key takeaways

• Your foreign credit history usually doesn’t carry over, so plan to start fresh.
• Open a bank account, then get one credit product that reports to both bureaus.
• Small, regular purchases paid on time build your history fastest.
• Check your reports after a few months and space out new applications.