Credit Cards for Newcomers and Students
I was recently asked how Americans can start building some credit history in Canada.
Newcomers to Canada and students are in a very similar situation where they have minimal to no credit history. So they have to start somewhere. There are several ways to get started. This is how I got started. I walked into a bank, locked in a some money into a guaranteed investment certificate (GIC) and was issued a secure credit card. At the time, I was given the CIBC Shoppers Optimum Visa (has since been discontinued). I used this opportunity to start building my credit history.
Secure Credit Card with a Branch
Getting a secure credit card is the easiest way to get started. The catch is that you do have to lock in some money for a certain period of time before you can access it (without penalties). This is done more on a case by case basis. You can do this by walking into a branch and talking to a financial advisor.
Every bank has their own secure credit cards. But alternatively, I would push them to give you one of the normal credit cards instead, so that you can get some rewards. Check out our list of top student credit cards list as alternative options to secure credit cards.
The catch is that they may generally ask you to lock in at least $5,000. That is not always possible for everyone, so there are alternatives.
Secure Credit Card with Capital One
If you do not wish to deal with a bank in person or cannot lock in enough secure funds, you can also go through Capital One, as they have several options to choose from:
All 3 credit cards require an annual fee. So this would not be my first choice. Furthermore, they offer no rewards either. But if your bank does not want to offer you a credit card, this may be the alternative option.
American Express Global Transfer
American Express actually has a program that helps existing credit card holders facilitate new applications after you moved to a new country. Fortunately, Canada is on the list of eligible countries for the Global Transfer. So definitely look into this option if you already have history with American Express.
Other countries include:
- Argentina
- Australia
- Austria
- Canada
- Finland
- France
- Germany
- Hong Kong
- India
- Italy
- Japan
- Mexico
- Netherlands
- New Zealand
- Singapore
- Spain
- Sweden
- Taiwan
- Thailand
- United Kingdom
- United States of America
Credit Score
Be sure to familiarize yourself with how the credit scoring system works in Canada. Build a good history and get the ball rolling towards maximizing your rewards!
For newcomers, several financial institutions will issue a non-secured credit card if you show a proof of employment and meet certain criteria. I was able to get a $2000 Scene Visa at Scotiabank as soon as I started my job in Canada. I also got an American Express (not from Scotiabank) Gold card through global transfer.
After 7 months, Scotiabank raised my limit to $4000, and I was able to apply for CIBC Dividend Visa with a $1500 limit.
Yes! Thanks sharing your experiences!
This was an invaluable post. I was approved today for the Amex SPG Canadian version based on my USA platinum card. Do you have any thoughts as to how long it might take for my credit score to be high enough to qualify for the Chase Marriott card? The only things on my Canadian credit report are a checking account and now the Amex card. Thank you!
If you want to be aggressive, you could potentially give it a try after 3 months of credit history being built up. 6 months would probably be better, but 1 year should do the trick. There is no way to really know until you try actually.