Is it difficult for new imigrant to get a credit card ?
Without a Canadian credit history, it’s difficult for lenders to assess creditworthiness. Start building credit by applying for a secured credit card or becoming an authorized user on someone else's credit card.
Lenders need to verify income and employment status to ensure the applicant can manage credit responsibly. Provide proof of employment, income statements, or bank statements to demonstrate financial stability.
Many credit cards require a minimum credit score, which may be difficult to meet without a Canadian credit history. Consider credit cards designed for newcomers or those with lower credit score requirements.
New immigrants may face challenges in providing sufficient documentation, such as proof of residency and identification.
Ensure you have the required documents, such as a Canadian address, SIN (Social Insurance Number), and valid ID.
Secured credit cards require a security deposit, which acts as collateral and determines your credit limit. This helps you build credit while minimizing the risk for the lender.
Look for credit cards designed for people with limited or no credit history, often with lower fees and simpler approval requirements.Some student credit cards have lower credit requirements and can be a good option for newcomers who are also students.
If you have a family member or friend with a good credit history, they may co-sign your credit card application.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 20,000 | 8.20% | 888 |
| 20,000 | 11.20% | 1,213 |
| 20,000 | 14.20% | 1,538 |
| 50,000 | 8.70% | 2,356 |
| 50,000 | 11.40% | 3,088 |
| 50,000 | 14.40% | 3,900 |
| 100,000 | 8.60% | 4,658 |
| 100,000 | 11.60% | 6,283 |
| 100,000 | 14.60% | 7,908 |
| 200,000 | 8.80% | 9,533 |
| 200,000 | 11.80% | 12,783 |
| 200,000 | 14.80% | 16,033 |
What are the best credit card for newcomers?
For newcomers to Canada, finding the right credit card can help build credit history and manage finances effectively. Here are some of the best credit cards for newcomers in Canada, considering factors like accessibility, benefits, and rewards:
- Capital One Guaranteed Mastercard
- RBC Avion Visa Infinite
- TD Cash Back Visa Infinite
- BMO CashBack Mastercard
- Scotiabank Scene+ Visa Card
- American Express Essential Credit Card
- Desjardins Cash Back Mastercard
You can see the similar FAQ at the link:
- How do I pay my CIBC credit card balance?
- How do I prepare my BMO MasterCard statements?
- How do I redeem points in CBA?
- How do I register for the Paymi CIBC offer?
- How do I track my BMO credit card application status?
Details of companies offering the financial services:
Home Trust
Web-site: https://www.hometrust.ca/
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
Capital One Bank
Head office’s address: 161 Bay St. #1800, Toronto, ON M5J 2S1
Contact center: 800-481-3239
Web-site: https://www.capitalone.ca/
Swift code: NFBKUS33
BSB: 323
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
Neo Financial
Web-site: https://www.neofinancial.com/
Capital One Bank
Head office’s address: 161 Bay St. #1800, Toronto, ON M5J 2S1
Contact center: 800-481-3239
Web-site: https://www.capitalone.ca/
Swift code: NFBKUS33
BSB: 323