Credit issues are no longer a novel topic, but for many people living in Canada, especially friends who have just immigrated to Canada, the importance of credit is still not particularly clear. In Canada, almost everyone has their own central credit record, and people typically use credit cards to make purchases of valuable or large items. However, for new immigrants who have just moved here from their home country, most do not have such a consumption concept. Below, the editor from Worldway Immigration will introduce the credit issues that are essential to know for living in Canada.
How to Obtain Your Personal Central Credit Record?
For example, after young people enter university, many different credit card institutions, including the credit card departments of banks or credit card companies in society, will actively contact these university students. As long as it is verified that they are indeed students of that school, a credit card will be automatically approved for them; or when people have a full-time or part-time job and start filing taxes, they have already begun to establish their own central credit record.
Of course, some new immigrant friends may feel that they have enough cash to pay for large items in full and do not need loans. However, it is still recommended that you apply for a small mortgage or loan, as this is the only way to gradually build your credit record in Canada.
What is a Secured Credit Card?
Some new immigrants who have just arrived in Canada may not have found suitable jobs or started to purchase property immediately, so they may not be approved when applying for a credit card. This type of application is for unsecured credit cards, which are generally assessed solely based on personal credit history. For immigrants who have just arrived in Canada and have not yet begun to establish a credit record, there will be some resistance.
However, this does not mean that it is impossible to apply for a credit card or that banks are unwilling to issue credit cards. At this time, one can apply for a secured credit card. Typically, a sum of money is deposited into an account as collateral, usually between 500-2000 Canadian dollars, and the bank will provide a credit limit of 500-2000 dollars. This way, one can obtain a credit card and start accumulating credit. For a period of time, this collateral amount is frozen by the bank, usually for 3-6 months. After a period of time, when you have an appropriate credit record, the bank will unfreeze the previous collateral amount, and the credit card will change from "secured" to "unsecured." Subsequently, with the established good credit record, when you apply for a loan, the bank can approve the loan by checking your credit record. Customers with good repayment records are more likely to obtain a more favorable interest rate.
Worldway Immigration Assistant Reminder: Canada places great importance on personal credit, so when you receive your credit card bill, be sure to make your payment on time before the due date. As a leading institution in the immigration industry with 18 years of experience, Worldway Immigration Group has a comprehensive customer service team to help new immigrant friends quickly integrate into local life. For more consultation, call: 400-138-2929
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