What Credit Score Do New Canadians Start With?

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  • November 20, 2021
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Amidst the excitement of moving to a new country, there are some important things to consider. Let’s learn what credit score new Canadians start with and how they build a credit history here.

Moving to Canada can be an exciting experience, but it comes with its challenges. One of the first few things you’ll need to do is establish a credit score. You credit history will not transfer from your home country. This is why you need to start building a strong credit history for your new country as soon as you set foot on the land.

There’s no definitive value for a good credit score. What might have been considered as a good credit score in your country may not work for Canada. For example, in the US, the average credit score is around 700. In Canada however, the figures are a bit lower, at 650. Although this is the average score, credit score in Canada typically ranges from 300 to 900.

What Credit Score Do new Canadians Start With?

When you arrive in Canada, you start with zero credit score. This is because you have no credit history in this country. Your old credit history does not follow you here from your home country. This is because every country has its own set of laws that govern how credit works for you.

Having zero credit score has both advantages and disadvantages. You can’t qualify for a loan to buy a new house or a car unless you have a reasonable credit score. However, a zero credit in a new country may even come as a blessing for some. Any history of bankruptcy or bad credit you had in the country you came from will not come with you. You can start fresh, make better financial decisions and build a new and better credit history in Canada.

Tips To Build Credit From Zero

There are some things you can do to start building your credit history right away:

1.   Get A Cellphone

The first thing you should do is get a cellphone and subscribe to a post-paid billing service. Your monthly bills are counted as credit and reported at the credit bureau.

2.   Get A Credit Card

If you want to build a credit history, go for a secured credit card. It asks for a minimum deposit. With a secured credit card, all your transactions are reported at the credit bureau and add to your credit.

3.   Partner With A Credit Building Service

Institutions also offer credit building services. For a minimum amount that you keep in the account you open with them, they will report your transactions to credit bureau and help you boost your credit in little time.

4.   Car Loan

While it might be hard to get a loan for a new car from the bank with little or no credit, car dealers have several options to help new Canadians. Getting a car at monthly installments will also build your credit history.


It’s not hard to start building a credit score, even for a new Canadian. Start slow and choose wisely. Keep a check on your credit score as you go and you’ll do great!

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