New to Canada? How to Build Credit From Zero

Credit history doesn't transfer from most countries, so most newcomers start with no Canadian score at all.

First steps

1. Open a bank account — most big banks have newcomer packages that include a credit card without Canadian history.
2. Get a credit card (or a secured card if refused) and use it for small purchases.
3. Pay the full statement balance every month and keep utilization under 30%.

How long it takes

A score usually appears after about six months of activity. After a year of on-time payments, most newcomers can qualify for car loans and many mortgages — several lenders run newcomer mortgage programs with as little as 5% down.

Avoid these mistakes

• Applying for many cards at once — each hard inquiry lowers your score.
• Missing a phone bill — it can be sent to collections.

Try the credit score simulator to see what moves your score.