Multiculturalism is a big part of what Canada is made up of and it’s one of the reasons why people come to Canada. Immigrants have been arriving in Canada for centuries. Many people come to Canada with dreams and hopes of a better future for their families. Financial prosperity is a goal of many people who arrive in Canada but it’s not always as easy as that. A huge obstacle can be the fact that many immigrants don’t understand how the financial system works in Canada. Many new Canadians lack the knowledge needed to become successful in the country. It can be hard for people to establish and build the credit history they need during their first year in Canada.
It’s important to know the rules.
It’s important to establish credit immediately. When you arrive in Canada you need to build a new credit history as your old one won’t matter in a new country.
Here are tips to ensure you are doing what you need to establish a credit history.
- Get a secured credit card. In the beginning it’s the only one you will most likely be able to obtain. They usually require a deposit as collateral. The credit limits are often low but they will build up over time as you build trust. Don’t get prepaid cards as they won’t be useful in building a credit history.
- Shop around for your new credit card. There are many different ones out there and you shouldn’t pick the first one you find. Some banks offer incentives to new immigrants such as unsecured credit cards with low limits. It’s low risk for them and they may gain a customer for life which is a huge benefit to them.
- Choose a retail credit card. If there are any issues with the banks then get a credit card from a non-financial institution such as gas companies or a retail store. You will be able to buy products but you may not be able to borrow any money. Pay your bills on time and you will build up credit that will allow you to get better cards with low interest in future.
- Learn what your credit rating is and understand it. There are two credit bureaus in Canada; Equifax and TransUnion. You are eligible to take one credit report each year free of charge.
It’s important to know what is going on with your credit to avoid any problems in the future. It’s possible for you to enjoy all that you deserve and to realize the dreams that you want in Canada. Be prepared and do your homework, be knowledgeable with your credit and you will be well on your way to be financially secure in your new life.