jeka12386

I have a PR and will be moving permanently to Canada/Ottawa next month.
As a new comer, I need to know if my very good credit history in the UK will also be valid in Canada when applying for a new bank account, credit card or mortgage.

If the answer to my question is NO, then how to make it recognised in Canadian?

BristolUK

Just tell the bank you're British. That'll do the trick.

MarkG

The traditional method for credit cards is to get a UK Amex card, then apply for a Canadian card and ask them to transfer your Amex credit history from the UK. But that won't help anywhere else.

I got credit reports from the UK before I moved, but never actually had to show them to anyone. My girlfriend organized the mortgage before I moved over (and we put about $100,000 down when we bought the place).

gary123

i printed off my credit report from the uk , and brought it with me , most just laughed , however one broker did use it to find a good deal for me , but most banks , etc will just not look at it , good or bad credit .

R I C H

Be prepared to start building it from scratch here and potentially having a few minor inconveniences along the way.

Jericho79

You'll have no credit history in Canada, period. Some banks may consider your UK history, but it'll be on a branch by branch basis, so the key is to shop around and to ask them bluntly if they'll consider your UK history before pulling a Canadian credit report.

** Dont let banks do Canadian credit searches on you, as it'll set you back for months, potentially.

The only way to get a Canadian credit history is to get credit in Canada- the easiest/quickest way is to get a secured credit card (eg. you leave a deposit of $500, and get a credit limit of $500). I'ts not impossible to get unsecured credit as a newcomer, but I wouldnt count on it. Getting a credit card (secured or unsecured) should be a priority, as it's difficult operating without one- you cant get a hotel, hire a car, etc (not all banks have cottoned on to Visa debit cards yet).

There is no way to transfer your UK history over to Canada- it doesnt work that way. Your credit score is derived by the individual credit rating agencies (Equifax and TransUnion), it is not calculated by the banks.

SchnookoLoly

+1 to what Jericho said.

Get a secured credit card - usually about $500, sometimes $1000. You end up getting the money back - some will have a setup like they'll hold it for 3 months, then just apply it to balances until it's gone, so after about 6 months you have a normal credit card. After about a year you can request an increase.

Only go to the bank to get a credit card after you have a job sorted out, though. If you have income you will find it easier. My husband got approved for the BMO World Elite MasterCard about two weeks after he started working, which was two weeks and one day that he'd been in Canada, and they gave him the card unsecured with a pretty reasonable credit limit. But he's got a very good job, which is what tipped the scales. My Canadian credit history was basically non-existent as I'd been gone for more than 5 years, but after I started working, I applied for the Amex Aeroplan credit card, and then a few months after that for the Amex Gold, and was approved for both.

So as Jericho said, go for the secured credit card. You can also get a secured phone contract - they'll probably ask you for $250 or $500 up front, and like the credit card, will just apply the deposit to your balance, but it still goes towards your credit rating so it's a good plan to get that.

Bring a printout of your UK Credit history, but don't count on necessarily being able to use it. Doesn't hurt to have it, though.

jeka12386

Thank you all for your comments and feedback. Much appreciated…

MillieF

I have never had a problem with this, as I stuck with my credit cards, and still have the same ones after 20 years...why does one need to close one down and open another? Surely all these things are international now? I do have local ones now, but I never get anyone to get a credit history based on them.

Jericho79

Eh?
Anytime/everytime you apply for credit, the company are going to obtain your credit score from a credit rating agency such as Equifax. It's not something you request yourself, but you do have to give your permission before they do it.

SchnookoLoly

We change credit cards to take advantage of various promotions, which have some value with them. In less than a year in Canada we've reaped in the range of $3000 of credit card rewards.

For example, when my husband first arrived, he signed up for the BMO World Elite MasterCard. The annual fee is waived for the first year ($150) with a promotion, you get $300 of travel credit to use towards travel when booked through BMO's travel service, and then the card has a load of other perks like an additional year of warranty on any electronic purchased on the card, points towards travel spend, travel insurance regardless of whether or not the trip was booked on the card, 4 lounge passes for airports, and a few other things.

When I arrived I signed up for the Amex AeroplanPlus card, which gave me 20,000 aeroplan points. I then did the "refer a friend" for my husband, who then got 30,000 points for signing up on a referral (after spending $500), and I got 10,000 points for referring him. Annual fee waived for the first year, so those cards will be closed in the next few months.

I am currently using the Amex Gold card - same deal as above, but better point rewards for gas, grocery, and travel purchases. Annual fee waived for the first year. I had the same card in the UK with the same bonus points structure, and I can transfer my UK points over to my Canadian account.

So in total, my Aeroplan bonuses added up to about 60,000 points. 60,000 points is one flight from Toronto to London, so the value of that is, what, $1100 or so? Plus $300 value from the BMO card, plus my husband's additional 30k Aeroplan points via Amex, so total value of just signing up for credit cards strategically is in the range of about $2000 which we've pretty well gotten for free. We've also spent enough on the MasterCard to save up an additional $800 in travel credits, which paid for one of our two flights to the UK this year.

Not to mention we then earn points on normal purchases anyway, and having just moved over to Canada and have just bought a house, we have a bucket of new purchases to make, so being strategic with the credit cards that reward handsomely for big spending can really pay off.

So we switch credit cards strategically to take advantage of bonuses and promotions without actually spending any money on having the card in the first place.

And yes, there is a balance to doing this - you don't want to sign up for everything and have a zillion credit checks on your credit history. We limit it to 2 new cards a year, though it's actually 3 cards this first year that we are in Canada. It also depends on you having the discipline to regularly pay off your credit card and not carry a balance - as soon as you are pinged with interest the whole process becomes far less profitable.

If anyone wants an Amex referral, Canada or UK, PM me.

Eddmac

What does that get you Schnooks?

SchnookoLoly

10k referral points for either the Amex Gold card or the AeroplanPlus card.

For the person who signs up:
--For the Amex Gold: 25,000 bonus points (Amex Travel Rewards points which can be transferred to Aeroplan), regardless if it's on referral or signed up "cold"
--For the Amex AeroplanPlus: 30,000 bonus points for signing up on referral instead of 20,000 bonus points for signing up "cold". Points are paid directly to your existing (or new) Aeroplan account.

Both cards are found on this link: https://www.americanexpress.com/ca/e...?filter=travel. The two in question in my post are the two Gold cards, not the Platinum ones.

Basically, if you want the Amex Gold card, there's nothing more in it for you, I just get some points for referring. If you want the AeroplanPlus card, though, we are both better off from a referral.

BristolUK

Small point but you might have to pay the airport tax part of that cost.

I've done similar stuff but on a much smaller scale. Got a card for a one off discount on a suit hire from Moss Bros; Big points bonus at Sainsburys, Shoppers DrugMart & Loblaws.

I did something similar with airmiles once, but after the first time when it was a good deal (Bristol to Paris return), the compulsory added fees to the 'free' flights (airport taxes and stuff) were actually more than the total cost of the same route with Easyjet.

I could never find much good value with airmiles after that first time.

happyhammers

I hate my bank in the UK (Halifax) for a number of reasons and would love to not pay them the 3 grand I still owe when I leave just out of principal.
Can they still pursue a debt in another country ? don't get me wrong I'm still going to pay as it's only 3 grand but I was just wondering.

Nice to give them the V sign though lol