Building credit from scratch

[canadiangirl78]

Ontario is very friendly toward new immigrants when it comes to banking and mortgages but I am a Canadian citizen who is moving back at age 33 after leaving at age 17. I have no credit history. So I had to give the bank $1000 in order to get a visa. I know this is a good start but how else can I get my credit built up? I have excellent credit in the US and worked hard for that so I am really sad to have to start all over again.

[muffy1]

Have you tried applying for a Canadian Tire credit card? I hear they are very easy to acquire. It might start out at a low credit limite, but can be increased based on your 6-month payment history with them.

Also, not sure if there is a TD bank near you- but if you visit a local branch (and I've heard this is common with Scotiabank, as well) if you visit a branch at month's end- due to wanting to meet quota's- they are more likely to approve you for at least a $500 unsecured credit card.

Also, a line of credit is a good way to start re-establishing your credit. Though, I'm sure it might be a bit tougher to acquire that right away.

All the best and hope this helps. Sorry, I could not offer more advice!

[steaky]

I learnt the hard way that credit grows slowly.  You can't get every credit card or just credit check (for set up utilities account) within a short period of time.

I too am a Canadian citizen moving back to Canada after leaving for 16 years.  Although I had some credit history being non resident of Canada, this did not give me some of the things I wanted (Visa credit card, Canadian Tire credit card,etc.) shortly after my arrival.  Gradually over time, I got what I needed.

[Fencesitter]

The Bank of Montreal has a "New Comers to Canada" program.  This is more for the immigrant, but it can help if you want to purchase a house.  A new immigrant can secure a mortgage without having a job (this is what I was told via e-mail and phone), but you'll need to put 30% down.  The credit check is minimal.  You can also get the use of a safety deposit box for a year, free of charge.  There are also other options for credit cards, etc. 

I am in the same position you are, so for the first year, I hope to get a credit card and use it for virtually everything I buy.  Then pay it off right away.  If I can't get an unsecured credit card, I'll try for a secured one.  I'll also try to get a gas card and other forms of credit to build my history.

It's a good idea to get letters from your landlord, utility company, phone company, etc, stating that you have always paid your bills on time.  Even though this may not officially be recognized, it will definitely help.  I was told by one banker that the bank will be flexible given that I have not lived in Canada for a number of years.

Since you're situation is somewhat unique, the banks will try to work with you...don't worry too much, they want your business and will try to work out options...

FS

[Jamgirl]

Getting a cell phone and cell phone plan help too and are reasonably easy to receive.

[canadiangirl78]

Thanks everyone! You gave me some good tips.

I talked to someone at Royal Bank of Canada and she said it is best just to stick with my one and only credit card for a year. She said after 9-12 months I will have established good credit if I pay off the balance before the due date every month. But if I apply for another credit card or line of credit right now that it will knock my credit score down when they pull my report. So I am going to stick with my one visa and use it a lot and pay it a lot.

Then after a year she said to have someone at RBC check my report for me and tell me if it is time for me to apply for another credit card. So I am just going to focus on this one account for a year.

I will still be researching but she was really helpful. Luckily my husband will be able to take advantage of all the newcomer programs when he gets here.

[parisien]

Thanks everyone! You gave me some good tips.

I talked to someone at Royal Bank of Canada and she said it is best just to stick with my one and only credit card for a year. She said after 9-12 months I will have established good credit if I pay off the balance before the due date every month. But if I apply for another credit card or line of credit right now that it will knock my credit score down when they pull my report. So I am going to stick with my one visa and use it a lot and pay it a lot.

Then after a year she said to have someone at RBC check my report for me and tell me if it is time for me to apply for another credit card. So I am just going to focus on this one account for a year.

I will still be researching but she was really helpful. Luckily my husband will be able to take advantage of all the newcomer programs when he gets here.

I have applied for canadian tire and capitalone CC and got approved and using them from march they have issued me secure card like i deposited 75$ and i have limit of 1000$ both cards with my wife and she is using it .....and i am suffering from that lol so for to have good credit you have to sacrifice as i am sacrificing ......
* As my case is in Process * but my credit is running which will be good enuff soi can get my own condo :p

[Pummelchen]

You should have 3 different lines of credit. Also you can have as many credit cards as you want, what puts the score down is not the amount of cards but the amount of credit checks per time period.

After I got a secured credit card I got a unsecured one from AMA after I became an AMA member. Got an iPhone on contract and even Ford offered to sell me a new car. And I'm still just a tourist .. 

[canadiangirl78]

Lol!! Good work pummelchen.

[Pummelchen]

Also pay back your debts before the end of the month and never use more than 7% of your available combined credit. The 7% rule stands for 30% of the credit score calculation.

[canadiangirl78]

But my limit is $1000 so 7% is $70. I can never spend more than that before paying it off first?!?