Home \ Credit \ Credit Guide \ How To Build Credit

How To Build Credit As A New Immigrant In Canada

Author:

Reviewed By:

📅

Updated On: October 26, 2026

Get a free, no obligation personal loan quote with rates as low as 9.99%

Free quote with no impact to your credit

Moving to a new country is exciting, but it comes with a long to-do list. You’re finding a place to live, starting a new job and getting settled, all at once. You’re also not alone: Canada welcomed 368,224 new immigrants between July 2025 and June 2026, according to Statistics Canada.¹

One thing that surprises many newcomers is that their credit history doesn’t move with them. Even if you had great credit back home, you’ll be starting fresh in Canada. The good news is that building credit here is easier than it sounds, and you can start in your first few weeks. This guide walks you through how credit works in Canada, what to do first and how long it usually takes.

Key Points

Canadian credit bureaus only collect information about credit you use in Canada, so most newcomers start with no credit score.
A newcomer credit card, a secured credit card or a credit building program are some of the easiest ways to start.
Canada’s big banks offer newcomer credit cards with limits of up to $15,000 and no Canadian credit history needed, depending on your status and how long you’ve been here.
Most people get a credit score after about 3 months of reported credit activity, but building good credit usually takes a year or two.
Some lenders will look at your credit history from another country, so ask before you apply.

How To Build Credit As A New Immigrant: Your First 90 Days

Here’s a simple plan to get your Canadian credit history started:

Get your Social Insurance Number (SIN). You need a SIN to work in Canada. You don’t have to give it when you apply for credit, but many lenders ask for it, and it helps the credit bureaus match information to the right file.²

Open an account. Most credit products need an account to make payments from. Many financial institutions offer newcomer packages, and since December 1, 2025, 14 financial institutions, including Canada’s 6 largest banks, have committed to offering accounts with no monthly fee to newcomers in their first year in Canada.³

Get your first credit product. Apply for a newcomer credit card or a secured credit card, or sign up for a credit building program.

Put your bills in your name. A postpaid phone plan and rent reporting can add more on-time payments to your credit history.

Set up automatic payments. Paying every bill on time is the most important thing you can do for your credit.

Check your credit after about 3 months. Make sure your accounts are showing up and your first score has appeared.

Does Your Credit History Transfer To Canada?

Not to your Canadian credit report. According to the Financial Consumer Agency of Canada (FCAC), Canada’s credit bureaus, Equifax and TransUnion, only collect information about your credit activity in Canada. To them, you don’t have good or bad credit. You simply have no credit yet.

That said, some lenders will look at your credit history from another country:

Scotiabank: Through its partnership with Nova Credit, newcomers who’ve been in Canada for less than two years and already have a Scotiabank credit card can use a credit report from one of 15 countries, including India, the Philippines, Mexico, the UK and the US, to get a higher limit of up to twice their current one.⁴
American Express: If you’ve had an American Express card in another country for at least 3 months and the account is in good standing, you can apply for a Canadian American Express card without a Canadian credit report.⁵
Mortgages: For newcomer mortgages, CMHC lets lenders accept an international credit report or a reference letter from a bank in your home country.⁶

Other companies, including BMO and Rogers, have also partnered with Nova Credit, so it’s worth asking any lender you apply with whether it considers international credit history. Moving from the US? Learn more about transferring your American credit history to Canada.

Pro Tip

If you still have a credit card or loan in your home country, think about keeping one account open and paid on time. Some lenders here can look at that history, and it’ll still be there if you ever move back.

Best Ways To Build Credit As A New Immigrant

Apply For A Newcomer Credit Card From A Big 5 Bank

Many of Canada’s big financial institutions offer credit cards for newcomers that don’t need a Canadian credit history. They usually have lower limits to start and are available to permanent residents, international students and temporary workers who arrived recently. Use the card for small purchases and pay the full balance each month.

Here’s who can apply for the newcomer credit card programs at Canada’s Big 5 banks, based on your status and how long you’ve been here. Each program covers several of the bank’s credit cards, so you can choose the one that suits you best:

Swipe to see all →

	Who Can Apply	Time In Canada	Credit Limit
RBC Newcomer Credit Cards	Permanent residents, international students and temporary workers	Within 12 months (48 months for temporary workers)	Up to $15,000
TD Credit Cards For Newcomers	Permanent and temporary residents	5 years or less	Up to $15,000for permanent residents
Scotiabank StartRight	Permanent residents, international students and foreign workers	Up to 5 years for permanent residents	Up to $15,000
CIBC Newcomer Credit Cards	Permanent residents and temporary workers with a work permit of 12 months or more	Within 5 years for permanent residents	Up to $15,000on a first card
BMO Newcomer Credit Cards	Permanent residents, and newcomers with a work or study permit	Not stated	Up to $5,000unsecured; apply in a branch

_{Eligibility as of October 2026. Check each issuer’s website for current terms.}

None of these credit cards need a Canadian credit history, but your starting limit depends on your income and the bank’s review. If BMO can’t approve you for an unsecured card, it offers a secured card instead. None of these banks’ newcomer card pages mention refugees or protected persons, so if that’s you, ask the bank directly, or start with a secured credit card or credit building program.

Apply For A Secured Credit Card

If you can’t get approved for a newcomer card, a secured credit card is much easier to get. You put down a refundable deposit, which usually becomes your credit limit, and your payments are reported to the credit bureaus like any other card.

Secured Neo Mastercard

Earns cash back

Fee: $9.99/month
Purchase Rate: 19.99%–29.99%
Min. Deposit: $50
Available In: All of Canada

Apply

Home Trust Secured Visa* Card

Lowest rate option

Fee: $0 or $59
Purchase Rate: 14.90%–19.99%
Min. Deposit: $500
Available In: All but QC

Vancity enviro™ Secured Visa* Card

Deposit earns interest

Fee: $0–$395
Purchase Rate: 11.25%–19.50%
Min. Deposit: $500
Available In: BC only

Rates and fees as of October 2026. Check each issuer's website for current terms. Your security deposit is refundable when you pay your balance in full and close the card.

Use A Credit Building Program

A credit building program lets you build credit history without borrowing money. With KOHO Credit Building, KOHO adds a small line of credit to your credit report and makes the monthly payments for you, and signing up only needs a soft credit check.

Open Account

KOHO Credit Building

Monthly Fee: $5–$10/month
Interest: 0%
Credit Check: Soft check
Reports To: 2 bureaus

Cost, Eligibility & FeaturesUpdated Oct 2026

Cost By KOHO Plan

$10/monthKOHO Core
$7/monthKOHO Extra (30% off)
$5/monthKOHO Everything (50% off)

How It Works

Line Of Credit: $225, with no interest; it shows up on your credit report
Payments: KOHO makes the monthly payments for you and reports them to Equifax and TransUnion; you don't need to make purchases or take on debt
Utilization: You pick the amount reported each month in the app; KOHO recommends 1% or lower
Eligibility: Fully verified KOHO account (not a joint account), with enough money in your Spendable balance to cover the fee (savings don't count)
Available In Quebec: Yes

Extra Features

Renews automatically, and you can cancel anytime
No hard credit check
No deposit needed for Credit Building
Access to your Equifax credit report and score in the app
Financial coaching in the app
Secured Credit Building also available
KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months*

*Based on members with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among members.

Rates and fees as of October 2026. Check KOHO's website for current terms.

Get A Postpaid Cell Phone Plan

With a postpaid plan, you use your phone first and get a bill at the end of each month, often on a contract. With a prepaid plan, you pay upfront before you use it. Some cell phone providers report postpaid accounts to the credit bureaus, so paying your phone bill on time can help you build credit. Prepaid plans aren’t reported. Ask the provider whether it reports before you sign up.

Have Your Rent Payments Reported

As a newcomer, you’re likely renting, and rent isn’t usually reported to the credit bureaus. Rent reporting services can change that:

FrontLobby: If your landlord uses FrontLobby, your on-time rent can be reported each month to Equifax, TransUnion and the Landlord Credit Bureau. Your landlord sets it up, and on-time payments are only reported with your consent.
Chexy: Pay your rent with a credit card and have your rent payments reported to Equifax with its Credit Builder feature, which comes with a paid Chexy membership.

Get A Co-Signer

If you need a larger loan, like a car loan for newcomers, a co-signer with good Canadian credit can help you get approved and get a better rate. They agree to pay if you can’t, so make sure you can keep up with the payments.

What You’ll Need To Apply For Credit

Having your documents ready makes applying for a credit card or loan much faster. Here’s what lenders usually ask newcomers for:

Proof Of Status

Your PR card or Confirmation of Permanent Residence, or your study or work permit.

Usually required

Photo ID

Your passport or another government-issued photo ID.

Usually required

Canadian Address

A utility bill, bank statement or lease that shows your name and Canadian address.

Usually required

Social Insurance Number

Many lenders ask for your SIN, but you don’t have to give it to apply for credit.

Often asked

Proof Of Income

A job letter, employment contract or pay stubs, especially for car loans and mortgages.

For larger loans

How Long Does It Take To Build Credit As A Newcomer?

About 3 months

How long most people need to use credit that’s reported to Equifax before they get a credit score.⁷

Source: Equifax Canada

Since lenders report once a month, your first score may take 3 to 6 months to appear after you open your first account. Building a good score usually takes a year or two of on-time payments and low balances, since the length of your credit history matters too.

What You Can Qualify For, And When

Here’s what many newcomers can expect as their credit history grows. Every lender is different, so treat this as a general guide:

	What You Can Usually Get
Right Away	A newcomer or secured credit card, a credit building program and a postpaid phone plan
After 3 To 6 Months	Your first credit score. On-time phone and rent payments also help when you apply to rent a new place.
After About 1 Year	A higher credit limit or a regular credit card, and better rates on loans
After 1 To 2 Years	A good credit score, which opens up the best rates on most credit cards and loans
In Your First 3 To 5 Years	Newcomer car loan and mortgage programs, which often don’t need a Canadian credit history

You don’t have to wait for a long credit history to finance a car or buy a home. RBC’s newcomer car loans are open to permanent residents and temporary workers who’ve been in Canada for less than 3 years,⁸ and TD’s are open to newcomers in their first 5 years.⁹ For a newcomer mortgage, CMHC-insured programs have no minimum time in Canada and accept down payments from 5%, with a minimum credit score of 600 or an international credit report.⁶ Learn more about car loans for newcomers.

How Credit Scores Work For New Immigrants In Canada

Your credit score helps lenders decide whether to approve you and what interest rate to offer. In Canada, credit scores range from 300 to 900, and a higher score means you’re seen as a lower-risk borrower. A good score can also get you lower interest rates and make it easier to rent an apartment or get a phone plan.

Credit Score Ranges

Here’s how Equifax classifies credit score ranges:¹⁰

	Credit Score
Excellent	760–900
Very Good	725–759
Good	660–724
Fair	560–659
Poor	300–559

You may see different scores with Equifax and TransUnion. That’s because not every lender reports to both bureaus, and each bureau uses its own scoring models.

What Affects Your Credit Score?

According to Equifax Canada, these are the main factors in your credit score and roughly how much each one counts:¹¹

	Weight	What It Means
Payment History	About 35%	Whether you pay on time. Collections and bankruptcies count here too.
Credit Used	About 30%	How much of your available credit you’re using. Try to stay below 30%.
Credit History	About 15%	How long your accounts have been open. This is the hardest part for newcomers.
Credit Mix	About 10%	Having different types of credit, like a card and a loan.
Inquiries	About 10%	How often you’ve applied for credit recently.

A hard credit inquiry happens when you apply for a loan or credit card and can lower your score a little. A soft inquiry, like checking your own score or getting pre-qualified, doesn’t affect it.

How Can You Check Your Credit As A Newcomer?

You can check your credit report for free with Equifax and TransUnion, and check your score for free with platforms like Loans Canada’s CompareHub. Checking your own credit is a soft inquiry, so it won’t affect your score.

If you don’t see a credit score yet, it’s likely because there isn’t enough credit history in your file. Give it a few months after you open your first account, then check again.

Check Your Credit Score For Free

See your credit score and track your progress with Loans Canada’s CompareHub. Checking your own score won’t affect it.

Check My Score

What To Watch Out For When Building Credit

Missed payments. Payment history counts the most, so even one late payment can set you back. Set up automatic payments.
Maxing out your credit card. Try to use less than 30% of your limit. If your limit is small, pay your card off twice a month.
Payday loans. They’re easy to get but very expensive, and an unpaid payday loan can be sent to collections and hurt your credit.
Applying for too much at once. Several hard inquiries in a short time can lower your score. Space out your applications.

Warning: Watch Out For Scams That Target Newcomers

Scammers often pretend to be from Immigration, Refugees and Citizenship Canada (IRCC) or the Canada Revenue Agency (CRA). IRCC will never threaten to deport you over outstanding fees, and the CRA will never demand immediate payment by e-transfer, cryptocurrency, prepaid credit cards or gift cards.

Be wary of anyone who promises a guaranteed job, visa, loan or unsecured credit card. A lender that asks for a fee before you get your loan, often called loan insurance, is almost always a scam.

Additional Reading

Best Bank For Newcomers In Canada

Newcomer Mortgage Programs In Canada

A Guide To Car Loans For Newcomers To Canada

Final Thoughts

Your credit history doesn’t move to Canada with you, but you can start building a new one right away. Get your SIN, open an account, start with a newcomer card, a secured card or a credit building program, and pay every bill on time. You’ll likely have a credit score within a few months and good credit within a year or two.

Building Credit As A Newcomer FAQs

Can you transfer your credit from another country to Canada?

Not to your Canadian credit report. Equifax and TransUnion only collect information about credit you use in Canada. However, some lenders, like Scotiabank and American Express, will look at your credit history from another country, so it’s worth asking.

How long does it take to build good credit in Canada?

Most people get a credit score after about 3 months of reported credit activity. Building a good score usually takes a year or two of on-time payments and low balances.

Do I need a SIN to build credit in Canada?

Not by law. Service Canada says you don’t have to give your SIN to apply for credit or get your credit report. However, many lenders ask for it, and giving it can help make sure your credit information goes to the right file.

Can a non-resident of Canada get a credit card?

Yes, but your options may be limited. Newcomer credit cards are often available to permanent residents, international students and temporary workers who arrived recently. If you don’t qualify, a secured credit card is usually the easiest option.

Can international students and temporary workers build credit in Canada?

Yes. You can build credit the same way as permanent residents, with a newcomer or secured credit card, a credit building program or a postpaid phone plan. Some newcomer cards and loans have different rules for students and temporary workers, so check the eligibility before you apply.

Does my income affect my credit score?

No. Your income isn’t part of your credit score. However, lenders look at your income separately when they decide whether to approve you and how much to lend.

Can I rent an apartment with no Canadian credit?

Yes, but some landlords may ask for more proof that you can pay, like a job letter, bank statements, references or a co-signer. Once you’re renting, a rent reporting service can help your rent payments build your credit.

_Sources

Statistics Canada, "Canada’s population estimates: Age and gender, 2026," The Daily, September 23, 2026.
Service Canada, "Social Insurance Number Code of Practice: When to provide your SIN," canada.ca, accessed October 2026.
Financial Consumer Agency of Canada, "Canadians can now access free and low-cost bank accounts featuring more monthly transactions," canada.ca, December 1, 2025.
Scotiabank, "International Credit Reporting for Newcomers with Nova Credit," scotiabank.com, accessed October 2026.
American Express Canada, "Moving to Canada," americanexpress.com, accessed October 2026.
Canada Mortgage and Housing Corporation, "Newcomers," cmhc-schl.gc.ca, accessed October 2026.
Equifax Canada, "No Credit Score or Zero Credit Score: What It Means," equifax.ca, accessed October 2026.
RBC Royal Bank, "Car Loans for Newcomers," rbcroyalbank.com, accessed October 2026.
TD, "Car loans for Newcomers to Canada," td.com, accessed October 2026.
Equifax Canada, "What Is A Good Credit Score," equifax.ca, accessed October 2026.
Equifax Canada, "How Is Credit Score Calculated?," equifax.ca, accessed October 2026.

_{Additional Sources}

RBC Royal Bank, "Credit Cards for Newcomers," rbcroyalbank.com, accessed October 2026.
TD, "Credit Cards for Newcomers," td.com, accessed October 2026.
Scotiabank, "Credit Cards for Newcomers to Canada," scotiabank.com, accessed October 2026.
CIBC, "Apply Online for a Newcomers Credit Card," cibc.com, accessed October 2026.
BMO, "Credit Cards for Newcomers in Canada," bmo.com, accessed October 2026.