How do newcomers build credit in Canada from scratch?

Why does my foreign credit history not count in Canada?

Canada has no universal credit-file transfer agreement with other countries. When you arrive, the two national credit bureaus — Equifax Canada and TransUnion Canada — have no record of you, so lenders see an empty file, not a bad one. A perfect repayment record back home does not hurt you, but it does not help either; you begin at the same starting line as everyone else.

There are narrow exceptions. Equifax Canada launched a Global Consumer Credit File that lets some lenders view foreign credit data, but it covers only a limited list of countries and not all lenders use it. A few banks have pilot programs that weigh foreign credit when issuing cards to newcomers. Treat these as bonuses, not plans — the reliable path is building a Canadian file from scratch.

What are newcomer banking programs, and are they worth it?

All of Canada's major banks — including Scotiabank (StartRight), RBC (Newcomer Advantage), TD (New to Canada Banking Package), and CIBC — offer newcomer banking packages. These typically include:

• A chequing account with no monthly fee for the first year
• A newcomer credit card issued with no Canadian credit history required
• Unlimited or low-cost international money transfers
• Access to an advisor, often in multiple languages

These programs are the fastest legitimate shortcut. A newcomer credit card reports to the bureaus exactly like any other card, so every on-time payment starts building your file immediately. If you can qualify for one, take it — it is almost always better than starting with a secured card.

What is a secured credit card and how does it work?

If you cannot get a newcomer or standard credit card, a secured credit card is the backup plan — and it works just as well for building credit. You provide a refundable security deposit (typically $200 to $1,000, depending on the issuer), and that deposit becomes your credit limit.

From the credit bureaus' perspective, a secured card looks like any other revolving account. Your payments — on time or late — are reported to Equifax and TransUnion, and the deposit is simply returned to you when you close the account in good standing or upgrade to an unsecured card.

To use a secured card well:

• Put one small recurring purchase on it, such as a transit pass or streaming subscription
• Pay the balance in full every month — carrying a balance costs interest and builds nothing extra
• Keep your balance below 30% of your limit; on a $500 limit, that means under about $150
• Set up automatic payments so a payment is never late

Can a phone plan really help build credit?

Yes — with one condition: it must be a post-paid plan. Major carriers such as Rogers, Bell, and TELUS report monthly payment history to the credit bureaus, so a post-paid phone bill paid on time adds a positive entry to your file at no extra cost. Prepaid plans, which you pay for in advance, do nothing for your credit score.

A word of caution: a carrier payment plan for a phone itself is a financing agreement. Missed payments count against you quickly, just like a missed loan payment. And not every carrier reports to every bureau, so when you sign up, ask directly: "Do you report my payments to Equifax and TransUnion?"

How long does it take to build a good score?

Canadian credit scores run from 300 to 900. Typical timelines for a newcomer who follows the steps above:

• Month 1–2: First card account appears on your credit file
• Month 3–6: A credit score is generated once the bureaus have enough activity to score
• Month 12–18: Scores commonly reach the "good" range (roughly 660–719) with disciplined on-time payments

Timelines vary by person and bureau — Equifax and TransUnion each use their own scoring model and may hold slightly different information, so your two scores will rarely match exactly. What speeds things up: multiple on-time accounts, low balances, and time. What slows things down: missed payments, maxed-out cards, and applying for many credit products in a short period.

How do I check my credit score and report?

You are entitled to review the information the bureaus hold about you. You can order your full credit report from Equifax Canada and TransUnion Canada by mail, phone, or online, and several free services show your score without affecting it. Checking your own report is a "soft" inquiry — it never lowers your score.

Review your reports a few times a year. Look for errors — accounts you did not open, payments wrongly marked late, balances that do not match — and dispute them with the bureau in writing. Catching an error early can save you months of rebuilding.

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