One of the biggest challenges facing immigrants or newcomers to Canada is they don’t have a Canadian credit history.
This is a big obstacle because it’s almost impossible to get credit like a mortgage to buy a house, get a car loan, get a loan or a line of credit to open a business unless you have assets that you can pledge as security.
The fastest and easiest way to build credit in Canada is to apply and take out a secured visa card with a Canadian bank. The limit amount of the card doesn’t have to be high it could be for as little as $1,000 to start. RBC offers secured Visa cards to newcomers to Canada. Eventually over time, once you have demonstrated to RBC that you can make your payments on time and have established a credit rating, RBC will release your security. It can take up to 18 months to establish a credit rating in Canada, so plan to wait at least this long before your credit card changes from a secured card to an unsecured credit card.
Here is an article about 5 financial tips for newcomers to Canada including a discussion about how a family from Dubai found it difficult to get access to credit because they had no credit history in Canada.