What Is a Credit Score?

In Canada, your credit score ranges from 300–900. Scores above 660 are considered good. The two main agencies are Equifax and TransUnion. They track how reliably you pay bills, loans, and credit cards. Lenders use this to decide whether to give you a credit card, car loan, or mortgage.

Your Credit History Doesn't Transfer

Your credit score from your home country does NOT transfer to Canada. You start fresh. This means even if you had an excellent score before, you begin with no Canadian credit history. This is normal for all newcomers.

Step 1: Open a Newcomer Bank Account

Several Canadian banks publish newcomer banking options. Compare current eligibility, account fees, transaction limits, and offer terms before choosing.

Step 2: Get a Secured Credit Card

A secured card requires a deposit (usually $500–$2000) that becomes your credit limit. Use it for small purchases (groceries, gas) and pay the full balance every month. After 6–12 months, you can graduate to an unsecured card and get your deposit back.

Step 3: Try Newcomer-Specific Products

Koho, Brim, and Refresh Financial offer credit-building products specifically for newcomers without any credit history. Borrowell and Credit Karma give you free credit score monitoring and personalized recommendations.

Never Miss a Payment

A single missed payment can drop your score by 50–100 points and stays on your report for 7 years. Set up auto-pay for at least the minimum payment, but pay the full balance whenever possible to avoid interest charges.

Keep Utilization Below 30%

Credit utilization is your balance divided by your limit. If your limit is $1,000, keep your balance below $300. High utilization signals financial stress and hurts your score even if you pay on time.