Build Credit Score Canada Newcomers Immigrants Guide 2026

📊 Get Your Free Credit Report

Before you start building credit, you need to know where you stand. As a newcomer, you likely have no Canadian credit history. But it's worth checking to make sure there are no errors or fraudulent accounts.

Canada has two main credit bureaus: Equifax and TransUnion. You can get one free credit report per year from each bureau. Visit their official websites and request your report online. This shows you exactly what lenders see when they check your credit.

Your credit report will likely be empty or very thin as a newcomer. That's completely normal. The important thing is to establish this baseline and monitor your credit as you build it.

🏦 Open a Canadian Bank Account

A Canadian bank account is your foundation for building credit. Major banks like RBC, TD, Scotia, BMO, and CIBC all offer newcomer packages. These packages often include no monthly fees for the first year and sometimes help with credit building.

Choose a bank that offers both chequing and savings accounts. You'll need the chequing account to pay bills and build your financial history in Canada. The savings account helps you save money for emergencies and larger purchases.

When you open your account, ask about credit products for newcomers. Some banks offer special programs that consider your international credit history or employment letter instead of just Canadian credit scores.

💳 Apply for a Secured Credit Card

A secured credit card is your best first step to building Canadian credit. You put down a security deposit (usually $200-$500), and that becomes your credit limit. This eliminates risk for the bank, so they'll approve you even with no credit history.

Look for secured cards that report to both Equifax and TransUnion. Cards from major banks usually do this automatically. Avoid cards with high annual fees — you shouldn't pay more than $50-$75 per year for a secured card.

Most banks will let you graduate to an unsecured card after 12-18 months of good payment history. When this happens, you get your deposit back and often a higher credit limit. Some good options include the RBC Secured Visa, Capital One Guaranteed Mastercard, and Home Trust Secured Visa.

⏰ Make All Payments on Time

Payment history makes up 35% of your credit score — it's the single most important factor. Always pay at least the minimum amount by the due date. Even one late payment can hurt your credit score significantly when you're just starting out.

Set up automatic payments for at least the minimum amount. Most banks let you schedule this through online banking. You can still pay more manually, but the automatic payment ensures you never miss a due date.

Pay your full statement balance every month if possible. This keeps your credit utilization low and saves you from paying interest. If you can't pay the full balance, try to pay more than the minimum to reduce the interest you owe.

📈 Build Long-term Credit History

Building good credit takes time — usually 12-18 months to see significant improvement. Keep your secured credit card active and use it for small, regular purchases like gas or groceries. This creates a consistent payment history.

After 6-12 months of good history, consider adding another credit product. This could be a cell phone plan, which reports to credit bureaus, or applying for a retail store credit card. Having multiple types of credit can improve your score.

According to Canada's Financial Consumer Agency, keeping old accounts open helps your credit age, which is 15% of your credit score. Once you graduate to an unsecured card, consider keeping your first secured card open if it has no annual fee.