Newcomer? How to Build Credit in Canada with Rent Reporting

Understand your credit file and score

In Canada, your credit file is maintained by two main bureaus: Equifax and TransUnion. Your credit score is a number (usually between 300 and 900) that reflects your financial reliability. The higher the score, the easier it is to get credit on good terms.

Pay your bills on time

Payment history is the most important factor. Every late payment can harm your score. Set up automatic payments or reminders to never miss a due date, especially during your first months in Canada.

Start gradually

You may have difficulty getting an unsecured credit card when you arrive. A secured credit card can be a good starting option: you deposit an amount as collateral, and you get a card with an equivalent limit. Use it modestly and pay it in full each month.

Have your rent recognized if eligible

If you're a renter, having your eligible rent payments recognized can add an additional positive piece of information to your file. This is particularly useful for newcomers who have little or no credit history in Canada. This data doesn't require taking on new debt.

Avoid common mistakes

Don't apply for multiple credit cards at once — each application generates an inquiry that can lower your score. Don't carry high balances on your cards. And most importantly, never miss a payment.

Learn more

• Rent and credit score
• How it works
• How to improve your credit score
• Rebuild credit after bankruptcy
• Credit after a consumer proposal