How to Establish a Credit Rating in Canada

Like the United States, Canada has three credit bureaus that keep track of money borrowed and how promptly it is paid back. Having a good credit history in another country isn't good enough to establish good credit in Canada. You have to build a good credit history when in Canada as a resident. The simplest way to build a good credit history is to open a secured credit card and pay at least the minimum payment on time every month.

Things You'll Need

• Secured credit card
• $200 to $300

Instructions

1. Contact a Canadian bank that offers a secured credit card. Examples are Royal Bank of Canada and Peoples Trust. Fill out the form online. Pay the minimum deposit amount required and the card will be sent to you usually in two to three weeks if approved.

2. Use the secured card wisely as you are building a credit history. Pay at least the minimum balance every month on time to ensure that the bank will report a good credit history to the three bureaus.

3. Within 18 months, your credit history in Canada should be solid if you paid everything on time. After 12 months, many banks will convert the secured card to an unsecured account, but check with the bank about this.

References

• Canadian Immigrant Website
• Bankruptcy in Canada