Often the biggest challenge as a newcomer to Canada is to actually start a credit history. The whole process can be a vicious circle of not being able to obtain credit due to not having a credit history and the seemingly impossible task of not being able to obtain that first credit card or loan in order to build a credit history.

Credit Options for Newcomers to CanadaIt is possible to obtain credit, and careful targeting can reap rewards in starting a credit history. Generally, a form of security for a lender is likely to increase the likelihood of a successful application such as the security of a vehicle or a cash deposit. Examples include:

• Secured credit card
• Auto loan
• Specialist loan (e.g., CitiFinancial, Wells Fargo)
• Purchasing a cell phone and service contract
• Hire purchase

High Risk Lenders

There are some financial institutions that will lend to newcomers, although the interest rates will be high, provided there are not multiple credit searches or enquiries. Some banks offering accounts for new immigrants may also be willing to provide a small loan to allow a credit history to be established.

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