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How can I get a credit card with no Canadian credit history?
Generally speaking, most banks in Canada will not give you a credit card if you don't have a Canadian credit history. However, there are some options for building your credit.
Even if you have many years of credit history with worldwide credit card companies, such as VISA and MasterCard, you might not be able to get a credit card in Canada right away. First, talk to the bank manager and ask if the bank will recognize your foreign credit history and give you a regular (unsecured) credit card. Make sure you bring any credit information you have from outside Canada.
Here are the different ways you can get credit:
- Get a secured credit card: To get this type of card, you need to make a "security deposit" with the credit card company. This may be cash, furniture or something else that the company will accept. Secured credit cards are a fast and reliable way to build credit
- Apply for a joint card: Find a friend or family member with good credit who will share the card with you. You would both be responsible for the bills, and this would help you build a credit history.
- Get a co-signer: It would be your credit card but the co-signer would be responsible if you were unable to pay your bills.
- Take out a loan: Apply for a loan from a bank or any other lending institution and pay it off quickly.
- Get a retail credit card: Apply for a credit card from a non-financial institution, such as a gasoline company or a department store. With these cards you can buy things at certain stores but you cannot borrow money. Usually these types of cards have a higher interest rate than cards from banks.
- Join a credit union at work or in your community.
The Ottawa Community Loan Fund (OCLF) also recommends these extra tips for building your credit history in Canada:
- Always make payments on time, even if they are only minimum payments. Paying only minimum payments is very expensive and can cost a lot in interest payments over the long term.
- Try to pay credit card bills in full or pay as much as you can.
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Track your spending weekly or monthly.
Try to use no more than 35% of your available credit each month.
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If you have a credit card, use it regularly to build credit history.
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Do not run away from credit problems. They do not go away. If you cannot make a payment, contact your lender and make to make payment arrangements.
- Get a copy of your credit report each year from Equifax and/or TransUnion, or use a free app like Borrowell to check your score regularly.
- Credit history is individual and national (not joint, or international or provincial).
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Last updated:
September 4, 2024
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