Hi,

We have been in BC for about 6 weeks now and I'm wondering what else we can do to build a good credit rating?

We both have established cheque accounts (opened whilst in UK - separate as we were told that only the first named gets the credit history relating to the account).

We have got Canadian AMEX cards via a global transfer (we had AMEX cards in the UK for 2 years).

We are paying for our ICBC insurance in installments as it involved signing a credit agreement (and paying interest - something I would not have done in the UK, but I figure a little interest is worth it if it helps build our record).

I'm also paying the contents insurance by installments for the same reason above.

I have also registered my business, opened a business cheque account and registered for tax - not sure if any of this will help.

We haven't tried to apply for a credit cards yet as neither of us are earning in Canada yet - not opening my business until the end of this month. Will they give us a credit card without an income if we have a healthy balance in our accounts? We haven't tried as we don't want to be turned down and have the fact we were declined listed on our credit record.

Does anyone have any other suggestions as to what else we can do? How long will it take to build up a good credit rating?

When we are earning, how long is it likely to be before we'd get a mortgage? I think HSBC (our bank) would probably let us have one - but they aren't the cheapest!!

Any advice would be gratefully received.

Louise

I would suggest secured credit. I have been in Canada for over a year, have a well paying job, direct deposit of pay check, GICs etc but still cant get credit

Just spoke to a credit card company - they will accept NO documents, US credit history, letter of references from banks etc, letter from employer - NOTHING at all. If you dont make the FICO score it makes no difference how much you money you have in your account. the fact that you have a job or income makes no difference either.

Hope you have better luck than I have had so far!

Hi Louise,

Have you read *this* it's very good and although US focused much of the advice is the same for Canada.

Rich.

http://britishexpats.com/articles/000090.html

this is the way i went to... just get a secured credit card and build your credit history with that. The money used for the security is still yours and you earn interest on it, just cannot touch it (for me, 3years... with TD Canada)

I dont live in Canada but have a house there. We opened a bank account with RBC before we bought the house.
Then I sent up all utilitiy bill payments by direct debit via the internet. I did this for about 6 months, and everything gets paid religiously. Then we were approached in a store and opened an HBC card, no problem.

On next visit my husband went into RBC and filed in a credit card application. A few weeks later the card arrived and we each have a visa card. I use these each time I go over and pay them off straight away when due via the internet. With credit cards you need to use them, and pay them of to get credit rolling, more you buy and pay off highter the rating goes. We have about $300 credit on HBc which is not much but it is a started , I think our credit card is$1000. we have a healthy balance in our bank account which may have helped. You need to show you can be responsible with money, but to be hones they make theirs by you not paying all the balance off on time.

Just keep using and paying off cards and they will in time increase limits.
I know people who have a mortgage and dont live in Canada. You need to have an income to get a mortgage, and like here it is not so much your credit rating I would have thought but what deposit you have, and how much you earn, and can afford to repay. It s not the same as getting credit cards.
Again unless you are earning in canada or here, they are unlikely to give you credit cards or a mortgage. If it is anything like here, trying to get a mortgage when you have just started out self employed may be hard, or if it is it is not at a good rate, even more so as you are an immigrant as well, and they may see that getting setled and starting a business is a risk to them.

My experience todate with credit ratings and finance (FWIW!)...

Arrived Nov 04, family sponsored (my wife) but with the good fortune of a well paid job lined up. (Sometimes fate just works out!). Rented an appartment intially - informal deal, no contract. Got letter from employer stating that I had started a permanent job as X and was earning Y p.a.. Took letter into Scotiabank and opened current account. (my wife already had a savings account with them although not much in it!). No probs with a cheque account and after giving details of financial situation - house in UK for sale with equity of Z% - got a credit card with $3k limit.

Then to Jeep dealer. Waved said employer letter in their face, proved that I was PR and not on short-term work permit and bingo, 60mths interest free no deposit on new Jeep Liberty!

In Feb, we took a gamble, having found v. nice house in the right area and not wanting to lose it. Went to Mortgage consultant, Centum Inc and waved job letter, payslips, proof of house/equity in UK and copy of my UK Equifax credit rating. After a couple of days thought they approved me for monster mortgage to buy new house. (Already had modest deposit.) Current situation is that UK house is sold for nth time (fingers crossed, touch wood) and hopefully I will have a nice pile of GBP and no outgoings their shortly. Now all I have to wait for is exchange rate to improve!

I think the bottom line on establishing credit rating is to talk to your bank and financial institution and if you have some net worth and most fundamentally a job/salary then all things within reason are possible. However, other banks may not take the same view based on your canadian credit score. For example I applied for Aeroplan visa card a few weeks ago and eventually got a response that I could have a secured one if I put as much in deposit with CIBC as I wanted credit on the card. Needless to say I gave that one a miss!

HTH,
AX

That was my experience with the CIBC. I got an Amex instead and still don't have a Visa card.

Like some other people have suggested on here I'd recommend looking at a secured credit card. I've just posted an application form today for a secured Visa card with Home Trust. The minimum deposit is $1000. It's not ideal but I'm just going to regard it as having a debit card to use which I can top up, whilst at the same time it will hopefully start to build up some credit history here.

Ben.

When we arrived last summer we made my wife's dormant BMO account a joint account and put a very large amount of cash in it.

We applied for credit cards at the same time, and the manager told us there would be no problem because of the amount of capital we had in the bank.

A week later we got a call from the CC issuers saying we had been refused as we had no credit history.

So we called the lady at BMO and told her that if we didn't get the cards we would take our custom to RBC (who were dealing with our investments and were trying to get our current account business).

An hour later we got a call from the CC issuers asking how much credit limt we required. We suggest $10k, they said fine.

So, we now both have Mastercards and hopefully are building a credit rating.