Toronto, September 18 (CINEWS): For newcomers to Canada, one of several important steps is establishing and building a credit history. According to a recent RBC newcomer poll, more than one-quarter (26%) of Chinese and South Asian newcomers who have been in Canada for 5 years or less, felt that given the chance again, they would have built their credit history sooner.
Credit can be used to help manage everyday finances such as signing up for a mobile phone, buying groceries and setting up household utilities. Some credit cards offer insurance that protects everyday purchases or reward programs that can be used for cash back, merchandise rewards or travel points.
Because credit history from another country is not readily accessible to Canadian financial institutions it’s crucial to establish a Canadian credit history as soon as possible. RBC recognizes this challenge, and offers credit solutions to help newcomers get started with no prior credit history required. If you’re new to Canada, one of the best ways to build a Canadian credit history is to open a Canadian credit card and use it wisely.
“Newcomers to Canada are adapting to a new life, new routines and new processes. A big part of that adjustment is understanding the Canadian financial system and banking, and we have a role to play in making sure that they are getting the right advice from day one,” said Christine Shisler, Director of Multicultural Markets, RBC. “We want to make sure Newcomers are getting the right advice, and that includes building a strong credit history and credit score.”
To help settle in Canada and begin building a positive credit history /with a healthy credit routine, Christine offers the following advice:
• Try to pay your full balance on time.If you are unable to pay the entire balance on time, make sure to at least pay the minimum balance. You’ll save on interest charges and still help build your credit history.
• Check your credit report at least once a year to make sure it’s accurate. You can request your report from Equifax or TransUnion, two credit reporting agencies in Canada, to see where you stand. A score is on a scale from 300-900 and the higher the score, the better your credit history.
• Learn how your credit card can work harder for you and make the right choice.