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Migrating your life to another country feels daunting, intimidating, nerve-wracking, and whatnot.
From thinking about finding a new job to getting a new credit card, everything seems like a challenge you fear failing.
Of course, it’s understandable.
You have to start everything from zero and build everything from scratch.
Whether it’s your career, house, or Equifax credit score.
It doesn’t have to be this hard! Well, what if it really isn’t? Yes!
You can still build a good score, history, and life for yourself as a newcomer in Canada if you know the basic tips and tricks to settle in.
Want to know how? Here you go:
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Because your life depends on it! Literally!
A good credit score is a key to flexible loan terms and reduced interest rates on your mortgage and credit card.
You'll be able to use this to finance a car purchase, a house, education costs, and more.
In fact, you can also save some bucks on your mobile phone plan thanks to your perfect score.
Still, if you have the question:
What makes Canadian credit so important?
We are happy to answer:
And you got that right.
Now the question is, you just shifted to Canada; you’re a newcomer! So what score do you actually improve?
Let’s read in the next section.
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Every newcomer in Canada has to start with a zero credit score. Yes, you read that right.
Due to no global framework for credit reporting, your previous credit will become nonexistent in Canada.
The reason is every country runs on its own set of credit rules. So, it becomes hard to decode everything on your report per their terms.
So, in simple words, you need to start a new credit life when you shift to Canada.
Of course, with continuous effort and good financial practices, you can build your score to a good range in no time.
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New Canadian immigrants find it difficult to get credit in Canada as their score is basically nonexistent.
They have nothing on their credit profile to show to lenders.
So, as a result, their options to get credit become limited.
One has to have a top credit score to get a top credit card in Canada.
Lenders consider the following standard while deciding to approve or reject your card application:
Some service providers only accept good or excellent scores. While others also accept above-average credit.
And everything below that is almost not acceptable for a card, loan, or any lending application.
Is there any card for people with bad credit? Any credit building option for newcomers in Canada? Yes!
So, how can a newcomer in Canada effectively build a credit history? Here you go:
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Building credit seems difficult for Canadian immigrants, especially if they don't know what to do or avoid.
So, here are some tips for figuring out credit mistakes you must avoid:
A secured credit card is the best pick for a newcomer in Canada or anyone struggling with bad credit.
Let’s read some convincing reasons why:
And the best part, there’s almost no credit check!
All the reasons newcomers need to register for a secured credit to build a credit history in Canada.
Moreover, it’s easier to manage as you can start with a low credit limit that can help you avoid overspending.
What’s worse than having no credit? No living place.
When you are struggling financially and personally, the lenders will only get alarmed that you don’t know how to manage your money!
So, the first thing after getting a credit card is looking for a place that can help with your credit.
Yes, your housing or rental can help you build history. Here’s how to do that:
It’s possible!
However, it might be hard to find landlords that can go out of their way to report your payment history to the bureaus.
A stable job, steady earning, and passive income can help your credit.
On the other hand, your credit building will become even harder if you are struggling to pay bills or meet the daily necessities.
Another tip is to find mobile phone, internet, or cable services that offer credit reporting.
The main reason to do so is you need to try anything and everything which can help your case when you are starting with your credit.
If you do the research, you might also be able to find banks or credit card companies that offer credit-building programs dedicated to immigrants.
You can ask your credit card provider, a top-rated bank, or any family friend that can recommend something helpful for your credit.
Although, it’s a given to avoid credit inquiries when you are a newcomer. But still, some people need to hear that!
Your bad financial habits will only slow down your credit-building process.
Yes, you need to use your card to add financial activity to your credit report.
But anything over the limit will ruin your credit-building chances.
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Well, the answer is typical.
The Canadian credit scoring system works the same for new, old, and every Canadian resident.
All these factors play a vital role in deciding your credit score.
The reason why every financial expert guides newcomer to start with secured credit as their first Canadian card.
Shifting to a new place is really like starting a second life.
You have to start everything from scratch with no experience on hand. Of course, you can apply some tricks from your previous area.
But, honestly, it’s not that effective.
Because every country has its own rules and regulations for immigrants and newcomers.
So, it’s becoming even harder for beginners to settle in and build credit to live a life full of benefits.
Not anymore!
This guide has everything a newcomer needs to know while shifting to Canada.
New job? Yes sir. New card? Yes sir. New House? Heck, yes!
Whatever you’re doing, you need to pick the options that go with your credit building.
Confused much? Read the complete guide to find the answers!