New to Canada

The Importance of Building Credit for Newcomers to Canada

Starting a new life in Canada can be filled with many opportunities, but the first few weeks settling in Canada can be overwhelming. Some of the first things that people do include applying for a Social Insurance Number, applying for a Health Card, getting a library card, and setting up finances.

 
  [Photo Credit: Maine Auto Credit and University of Iowa]

If you are looking to make a big purchase, such as buying a home, a car, or paying for education, you might look into borrowing money from a bank or financial institution. In order for them to loan you money, they will look into your credit history to determine whether you have good credit.

 

What is building credit?

Your credit history is something that a bank or financial institution will look at when you apply for a credit card, a line of credit, a loan or mortgage. Credit history is very important because it shows a record of how well you will be able to repay the money borrowed.

If you miss payments or make late payments, your credit history will become bad and this will make it difficult for you to borrow money in the future.

[Photo Credit: About Credit Score Improving]

Why is building credit important?

Establishing a credit history can be very important because this record documents your past borrowing and repayment, which can determine your ability to repay your debts.

As a newcomer to Canada, it is important for you to understand how credit works and to build a good credit rating. Newcomers can build good credit by applying for a credit card and making timely payments.

How do I build credit?

Those that are new to Canada may find it difficult to be eligible for a credit card without a credit history or employment income. In these cases, there are many options that are available if you are looking to start building credit. Get some financial advice from banks in your neighbourhood or through this Bank Resource List.

You can also have a look at some of Toronto Public Library's books and videos on Credit Cards, Consumer Credit, and Personal Finance:

        

The Toronto Public Library also has many programs geared for Business, Legal, and Personal Finance. Have a look to see if any are happening near you! Don't forget to also check out our Business & Personal Finance Blog for more information.

Newcomer stories

When it comes to building credit and seeking financial advice, you are not alone. Have a look at some of the experiences of other new to Canada individuals. Newcomer journeys from Jian, Kim, and Young Keun at Bank of Montreal, stories from landed immigrants, foreign workers, and International students at Scotia Bank, and a video of how Myin found success as a newcomer to Canada at Royal Bank Canada.

Library Settlement Partnerships at Toronto Public Libraries

Did you know that there are Library Settlement Partnerships (LSP) at the Toronto Public Library?

    
     [Photo Credit: LSP Program Photos from the Library Settlement Partnership Website]

LSPs are newcomer information services that are offered to different communities throughout Ontario. These LSPs provide free assistance with getting a job, learning English, getting a driver's licence, and much more.The service is made possible by a partnership of the settlement sector, public libraries, and Citizen and Immigration Canada.

                

There are 16 different Toronto Public Library branches that have a LSP worker who specializes in one-on-one settlement information and referral, group information sessions, and community outreach provided in a variety of languages. These 16 library branches include:

Within these library branches, there are eight Settlement Agency Partners that offer services and programs. These agencies are listed below, please click on the agency name to access their website.

Library Settlement Partnerships as well as Toronto Public Library continue to offer great programs that are suitable for ESL and Newcomer patrons. Visit the Toronto Public Library website.

Don't forget that we also have materials in other languages. To view the complete list, visit our website.

 

Money management

Flemingdon Park Branch is giving a workshop on Money Management - Surviving Tough Times on Thursday October 21, 2010 from 2:00 p.m. to 3:00 p.m. Topics covered include:

• Rules of money management and budgeting
• Saving your money and budgeting
• Strategies for establishing and reaching your financial goals
• Understanding credit bureaus, credit files and credit ratings
• How to deal with creditors and collectors

For more information and to register, contact the Settlement Worker(s) at 647-296-6051 or 647-296-6705.

 

Financial management and investment

A free information session on Financial Management & Investment is available at the Bridlewood Branch on Thursday October 14, 2010 from 6:30 p.m. to 8:00 p.m. Newcomers are encouraged to attend and receive information on:

• Managing money
• Types of investments for newcomers
• Canadian financial market

The workshop session is in Mandarin. For more information and to register, contact the Settlement Worker at 416-316-3803.

Budgeting and Money Management

Attend a free information session on Budgeting and Money Management on Thursday August 26, 2010 from 2:00 p.m. to 4:00 p.m. at Parkdale Branch. Learn more about:

• Smart banking
• Consumer awareness
• Financial resources

For more information and to register, please contact the Settlement Worker at 647-836-9578.

Your financial rights

Finding out about your financial rights and responsibilities in your newly adopted country does not have to be confusing or stressful. The free workshop on Your Financial Rights on Thursday August 19, 2010 from 1:00 p.m. to 3:00 p.m. at the Toronto Reference Library will cover topics such as:

• The Financial Consumer Agency of Canada (FCAC)
• Debit and credit cards
• Building a credit history
• Consumer resources

For more information, call 416-928-3362 ext. 2165.

Small Business Workshop

The Small Business Workshop on July 21, 2010 at Agincourt Branch from 10:00 a.m. to 12:00 p.m. will assist you with:

• How to start a small business in Ontario
• Registering for a HST account
• Payroll requirements
• What expenses can be claimed

The workshop information session is available in Chinese. For more infomation and to register, contact the Settlement Worker at 647-388-3762.

Financial Planning and Basic Benefits

Find out what Financial Planning & Basic Benefits in Canada is all about. The workshop will provide information for newcomers on:

• Canada Child Tax Benefit (CCTB)
• Ontario Child Benefit (OCB)
• Universal Child Care Benefit (UCCB)
• GST/HST
• What you should know about benefits if you are self-employed
• What you should know about Employment Insurance (EI) benefits

This free information session is in Mandarin at Bloor/Gladstone Branch on Friday July 23, 2010 from 2:00 p.m. to 4:00 p.m.

Money Management for the Newcomer

"Where does the money go?", "What's credit?", "How can I save?" may be questions you frequently ask yourself as you settle in your new country. The free seminar on Money Management and Budgeting on April 19, 2010 from 2:00 p.m. - 4:00 p.m. at Richview Branch will answer all your questions and more including:

• how to save for wants, needs, and emergencies
• a strategy for establishing and reaching your financial goals
• what credit is all about
• how to create a realistic budget