New to Canada? Here’s how the Scotiabank newcomer offer can help

Newcomers to Canada typically have a hard time applying for credit cards or financial products simply because they have no Canadian credit history. Fortunately, Scotiabank’s StartRight® Program offers newcomers the ability to apply for credit and start building their credit history in Canada.

As a newcomer, you can get personalized financial advice and apply for credit cards that don’t require a lengthy Canadian credit history. This gives you the chance to start building your credit score right away, so you can qualify for higher credit limits or better borrowing terms as you’re setting up life in a new country.

Why your credit score matters

It’s hard to overstate just how important your credit score is. This three-digit number reflects your financial habits and history, and it’s the number lenders and card issuers look at when they’re deciding whether or not to approve your applications for credit. 

Essentially, your credit score tells lenders how risky you are to lend to. 

People with low credit scores or those who don’t have a credit score at all will likely find it much harder to be approved for loans, credit cards, and mortgages. On the other hand, people with high credit scores will not only be more likely to be approved, but also may have access to better interest rates and loan terms.

How to establish a strong credit score in Canada

The credit monitoring bureaus, Equifax and TransUnion, look at your personal financial factors to determine your score, but they don’t weigh these factors equally. Here are the rough numbers:

• 35% of your score is determined by your payment history: This is your record of loan or credit payments. Since missed payments can damage your credit score, always make at least the minimum payment for all your accounts each month.
• 30% of your score is influenced by credit utilization: This is how much available credit you’re using. Using around 30% or less of your available credit will help boost your score.
• 15% of your score is determined by your credit history: Newcomers are at a distinct disadvantage with this factor since it takes into account the age of your Canadian credit accounts—foreign accounts don’t count.
• 10% of your score is dependent on your credit mix: Credit bureaus want to see a mix of credit types to see if you’re responsible with your finances. Having a mix of auto loans, lines of credit, credit cards, and even student loans on your history can help your score.
• 10% of your score is determined by requests for credit: Lenders pay attention to how often your credit report is pulled, like when you’re looking for new credit. Many pulls in a short time can indicate you’re struggling financially, so limit the number of credit applications you submit to protect your credit score.
  

Many of these factors take time to develop, which can make it difficult for newcomers to build a good credit score. Fortunately, Scotiabank has a powerful credit-building tool for new Canadians.

How the Scotiabank StartRight® Program works

As most newcomers to Canada find out quickly, you typically can’t bring your credit history with you when you move, so it’s hard to access loans and other credit products. That’s where Scotiabank’s StartRight® Program comes in.

StartRight allows you to set up your personal finances through Scotiabank, including a no-monthly fee chequing account for the first year, credit cards and specialized mortgage financing. 

As a Scotiabank’s StartRight® Program member, you can get: 

• Up to $700 when you bundle an eligible banking package, savings account, and registered account.
• No monthly account fees on a Preferred Package chequing account for the first year.
• Unlimited no-fee international money transfers from a Scotiabank chequing or savings account.
• Apply for credit cards even without an established Canadian credit history, so you can start building a credit score as soon as you’re approved 
• 10 free equity trades when you invest at least $1,000 in a new Scotia iTrade® account.

You can make an appointment at any Scotiabank location to join StartRight if you meet the qualifications.

Permanent residents must show one piece of Canadian government-issued ID along with a permanent resident card or Confirmation of Permanent Residence (COPR) document. Foreign workers must show a work permit and one piece of Canadian government-issued ID.

FAQs

This article is provided for information purposes only. Any information, data, opinions, views, advice, recommendations or other content included in this article are solely those of the author and not of Scotiabank or its affiliates. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article is subject to change without notice.

This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited, and produced by MoneySense with assigned freelancers.

Read more about newcomers:

• How to build confidence in your financial life
• How bad access to credit keeps newcomers from getting ahead
• 8 financial mistakes newcomers to Canada make—and how to avoid them
• Buying a car in Canada: 7 tips for newcomers

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