Advertisement
Why Canada’s financial sector needs to be more welcoming, plus tips for immigrants to establish their credit standing sooner.
When newcomers arrive in Canada, many bring financial responsibility, professional experience, and aspirations for a better future. But despite these strengths, one key element often stands in their way: access to credit.
According to a 2025 TD survey, 92% of newcomers understood the importance of building credit before arriving in Canada. Yet 82% of those who applied for credit faced immediate barriers. For many, these challenges go beyond inconvenience. They directly affect immigrants’ ability to secure housing, buy a car, start a business, and simply build a life in Canada.
This isn’t just about money. It’s about inclusion. And if Canada sees immigration as important to its future, then removing systemic financial barriers must be part of the national conversation.
Like many immigrants, I arrived in Canada financially stable. But the Canadian financial system didn’t recognize that.
I grew up in India and the Middle East with a simple rule: never buy what you can’t afford. Credit cards weren’t necessary, loans weren’t encouraged, and financial independence meant living within your means. That worldview shaped my early adult life—until I met my wife, who was born and raised in Ottawa.
I remember one of our early conversations while we were still living abroad. She was confused about why I booked flights through a travel agent. The answer was simple: I didn’t have a credit card. And I didn’t feel like I needed one. To her, this was strange; in Canada, a credit card is a default tool for everything from booking travel to building rewards points. For me, it felt like a way to buy things I couldn’t afford. We weren’t arguing, just coming at the problem from different cultural angles.
Eventually, I applied for a credit card and, like many people who didn’t grow up using credit, I abused it at first. It felt like free money, but that illusion wore off quickly. Over time, I developed a healthy relationship with credit: using it for convenience, managing payments responsibly, and collecting points for purchases I would have made anyway. When we eventually moved to Canada, all of that learning felt like it didn’t matter anymore.
Here’s a truth most newcomers know, but few are prepared for: your financial history doesn’t follow you.
Despite arriving with a strong financial foundation, I couldn’t qualify for a meaningful credit limit. My first Canadian credit card had a limit of $200, barely enough for half a Costco run. It wasn’t that I had a bad credit score. I didn’t have one at all. And building one from scratch took years.
This wasn’t just a minor inconvenience. It affected every part of our lives.
We couldn’t get a mortgage, not because of our income or how much we had saved for a down payment, but because of a lack of credit history. When we finally did qualify, we had been in the country for years and had done everything right: on-time payments, healthy credit utilization, excellent scores in the 800s. But still, I wasn’t seen the same way the system viewed my wife, who had been born and raised here.
Even now, after more than six years in Canada, my access to credit remains restricted. I don’t get offers for balance transfers, lines of credit, or automatic credit increases like she does. Why? Because she has decades of history, and I don’t. The system rewards longevity, not responsibility.
The TD survey confirms what I experienced. Among newcomers:
That last stat is crucial. Building credit isn’t just hard, it’s systemically difficult for immigrants. And that’s the problem.
Even though 92% of newcomers say building credit is important, they’re often left without the tools to do it effectively.
Yes, the financial services industry is beginning to acknowledge the unique needs of newcomers, but acknowledgment isn’t enough. It’s like going to a doctor who finally understands your symptoms but doesn’t have a treatment. Empathy without action is still inaction.
If Canada wants newcomers to succeed, we need more than empathy. We need solutions.
Through my own journey and many missteps, I’ve learned a few things about navigating Canada’s credit system. Here are some practical tips to help others:
Newcomers don’t lack discipline. They don’t lack awareness. They often don’t even lack income. What they lack is access and a system that’s designed to meet them where they are.
While advice is helpful, it only goes so far. The truth is that Canada’s financial system needs to do more to support newcomers. It’s not enough to acknowledge our challenges. We need institutions that design solutions with newcomers in mind.
If you’re new to Canada and struggling to build credit, you’re not alone. There’s no shame in starting from scratch. But the process shouldn’t be this hard. Financial institutions have a role to play not just in welcoming newcomers, but in empowering them to thrive.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Phone plan prices are all over the map. Here’s how to find an affordable plan that fits your needs...
Customers lodging a complaint with the Canadian Transportation Agency are in for lengthy delays. Here’s how much time a...
Air Canada is overhauling its Aeroplan loyalty program, including how to reach Elite Status. Find out how and when...
To avoid paying the standard 2.5% foreign transaction fee, choose a card with a 0% forex fee or shop...
If you have existing credit card debt, opening a balance transfer credit card is a smart move. You’ll save...
How much is your property worth? It depends who you ask—and the answers could be tens of thousands...
More and more Canadians require hands-on personal care in their declining years, but few plan ahead for it. Here...
Sponsored By
Coast Capital
Canadian parents will spend hundreds per child on back-to-school supplies. Here’s how to get what they need when money’s...
You’ve heard the buzz about this no-fee cash back card, but is it worth the hype? And how does...