The term “credit” may become widely used after coming to Canada as those who have credit are able to buy products and services with the intention of paying for them later.
Bank-issued credit cards are the most popular way to obtain credit but getting one might be challenging for newcomers as most banks only accept clients who have a history of good credit. Nevertheless, most banks in Canada facilitate credit to newcomers without having a credit history, provided they provide documentation that prove they are a new immigrant. Some of them are:
This facility may not be available for international students. This helps many improve their Canadian credit history, but the issued credit instrument must be used cautiously to maintain a high credit score.
The appropriate credit card is determined according to what requirement the client might have. Some credit cards have low annual interest rates (less than 19.99%) while others have little to no annual fees for purchases made but, some credit cards also provide benefits like cash back through which clients receive a portion of the money that they have already spent on the purchases.
Credit score is a numerical indicator of an Individual’s financial situation that is used to reveal the credit risk about an individual to the lenders and the probability of receiving timely bill payments. Credit scores in Canada are typically ranged from 300 to 900 with higher numbers being preferred.
An individual’s credit scores are affected by various aspects like:
If credit scores are pulled too frequently it could lead to a reduced score. The credit report records every request a money lender makes to view the report. Multiple and frequent enquiries show lenders that the individual needs fast financing and that money is not being governed efficiently.
Speak to your consultant to know more about banking in Canada. Check out Owlspriority Immigration’s Canada Settlement Resources to learn about finding employment in Canada, making your initial days stress-free, etc.