You arrive in Canada with 10 years of perfect credit history in your home country. Zero debt, cards paid on time, maybe a closed mortgage.
In Canada, that history doesn't exist. You start at zero.
This isn't a system error — it's how it works. Credit doesn't cross borders. Equifax and TransUnion Canada are separate entities from their LATAM counterparts, and information is not shared between countries.
This matters because in Canada your credit history affects:
- Your ability to rent an apartment
- Your access to a credit card
- The cost of your car insurance
- In some cases, employment decisions
What to do BEFORE leaving LATAM
1. Close the credit cards you won't use
Credit cards open in your home country keep charging annual fees even if you don't use them. Cancel them before you leave — except one or two you'll keep active (see below).
To cancel: pay the full balance → call the bank → request a cancellation letter → keep that letter.
2. Keep ONE active bank account in your home country
Don't close everything. You'll need an account back home to:
- Receive family transfers
- Manage properties or investments you left behind
- Have a financial safety net during the first months
The ideal account has no inactivity maintenance fee and allows cheap international transfers.
3. Get your official credit report
Request your official credit bureau report before leaving. While Canadian lenders won't accept it directly, some private landlords (not large property management companies) and lease negotiators will consider it.
Save the PDF.
4. Get a letter from your bank in English
Ask your bank for an official letter in English stating that you have been a customer since [year] with an account in good standing. It's not a Canadian legal document, but it can help with flexible landlords and to show financial stability.
How to build credit history in Canada from month one
Step 1: Open a bank account with a newcomer program
Scotiabank StartRight, RBC Newcomer Advantage, and TD New to Canada Package have one key benefit: they give you access to a credit card with no Canadian credit history.
This newcomer card is your starting point. Without it, conventional banks will reject you because you have no score.
Step 2: Use the card — and pay it in full every month
History is built by using credit, not avoiding it. The strategy:
- Use the card for small everyday expenses (groceries, gas, subscriptions)
- Never exceed 30% of your credit limit — this negatively impacts your score
- Pay the full balance every month, not just the minimum
- Set up automatic payments so you never forget
After 6 months of this, you'll have an initial credit history. After 12 months, your score will be sufficient for most apartment applications.
Step 3: Secured credit card if the bank won't give you a regular one
If the bank rejects your newcomer card application (happens with some temporary work permits), the alternative is a secured credit card: you deposit $500–1,000 CAD as collateral and that amount becomes your credit limit.
Home Trust Secured Visa and Capital One Secured Mastercard are the most common. They work exactly like a regular card for credit history purposes.
Step 4: Credit builder loan
Some banks and credit unions offer "credit builder loans" — small loans of $500–2,500 CAD where the money stays in a locked savings account while you make monthly payments. When done, you get the money and have 12–24 months of payment history.
Look for them at Refresh Financial or local credit unions.
How credit scores work in Canada
Canada has two main credit bureaus: Equifax Canada and TransUnion Canada. Companies report to one or both.
The score runs from 300 to 900. What you need to know:
| Score | What you can do |
|---|---|
| 300–579 | Very limited. Secured cards only |
| 580–669 | Can rent with an extra deposit |
| 670–739 | Regular cards, normal rental process |
| 740–799 | Favorable loan conditions |
| 800–900 | Best rates on everything |
Factors that affect your score:
- Payment history (35%) — do you pay on time?
- Credit utilization (30%) — how much of your limit are you using?
- Length of history (15%) — how long have you had credit?
- Credit mix (10%) — variety of products?
- Credit inquiries (10%) — how many banks have checked your credit recently?
You can check your score for free on Borrowell or Credit Karma Canada without negatively affecting your history.
What not to do
Don't apply for multiple cards at once. Each application creates a "hard inquiry" that temporarily lowers your score. Apply for one, use it for 6 months, then consider a second.
Don't close your first card. Even if you get better cards later, your first one is your oldest credit history. Close it and you lose that age.
Don't use more than 30% of your limit. If your limit is $1,000, don't put more than $300 on the card at any point — even if you pay it off completely at the end of the month.
Renting without Canadian credit history
Credit history is the first thing landlords ask for. Without it, you have options:
1. Offer a higher deposit — some landlords accept 2–3 months deposit instead of 1 if you have no history.
2. Letter from your employer — if you already have a job, a letter confirming your salary and start date compensates for the lack of history for many landlords.
3. Private landlords vs. companies — large property management firms have stricter processes. Private owners on Kijiji and Facebook Marketplace are more flexible to negotiate with.
4. Subletting for the first few months — renting a furnished room or unit while you build history. Costs more per month but requires no credit check.
Six months of responsible credit card use in Canada completely changes your position. The first year is the hardest — after that, the system works in your favor.
Start the process on day one. The time it takes to build credit history cannot be recovered.
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