Banking and Credit for Newcomers to Canada
Yes, you can open a Canadian bank account with no job and no credit history. A federally regulated bank must open a personal account when you show acceptable ID, such as two documents from a reliable source. Your Canadian credit score, on a 300 to 900 scale, starts from zero, and FCAC says a newcomer with no credit history may want to consider a secured credit card.
Can a bank refuse to open your account?
Under the federal rules administered by the FCAC, a federally regulated bank generally must open a personal deposit account when you present two acceptable pieces of identification (typically one document with your name and address, and one with your name and date of birth). It cannot require a first deposit or a minimum balance (Bank Act, s.627.17).
FCAC's list of grounds for refusal does not include having no job or no credit history. A bank may refuse, for example, if it has reasonable grounds to believe the account is for illegal or fraudulent purposes, if you knowingly made false statements, if you had illegal or fraudulent activity with financial service providers in the last 7 years, or if you do not allow it to verify your identity. A bank that refuses must tell you in writing.
The rule
Federally regulated banks must open a personal deposit account for anyone who provides two acceptable pieces of identification, unless a listed ground for refusal applies.
What do you bring to open an account?
Documents typically required to open an account:
- Passport (valid)
- Permanent Resident card or Confirmation of Permanent Residence (COPR)
- Study or work permit (if applicable)
- Proof of Canadian address (rental agreement, utility bill, or letter)
- SIN, if you have it (the CRA says you need one to open most types of bank accounts)
Under the federal Commitment on Low-Cost and No-Cost Accounts, FCAC lists a newcomer to Canada as eligible for a no-cost account in the first year in Canada, at the banks that signed the commitment. Ask for it by name when you open your account.
How does the Canadian credit score work?
Canada has two main credit bureaus. FCAC says scores usually range from 300 to 900, and a higher score is better. Lenders use your credit report and score to decide if they will lend you money and at what interest rate.
Landlords and some employers may also check your credit. As a newcomer, you will likely have no Canadian credit file at all: FCAC says credit bureaus only collect information about your credit activity in Canada.
Under FCAC guidance, you can get your credit report free from each bureau online, by mail or by phone. FCAC says some federally regulated financial institutions also give free credit scores in their banking apps, and the score you see may differ from the one a lender sees.
How do you build credit from zero?
FCAC sets no timeline for building credit. It says your score goes up when you pay bills on time and use credit responsibly, and credit bureaus update your report at least once a month.
Start with a secured credit card
FCAC suggests a secured credit card if you are a newcomer with no credit history. You give the card issuer a security deposit, and it normally sets your credit limit at or above that deposit. Ask the issuer whether it reports to both credit bureaus.
Ask about other starter products
Some banks offer other starter products, such as a credit card in a newcomer package, and some lenders offer credit-builder loans. Ask what the starting limit is, what the product costs and how it reports to the credit bureaus before you sign up.
Pay every bill on time
FCAC says payment history is the most important part of your credit score. It also says a credit report may include phone, internet or utility accounts.
Keep your balances low
Credit usage, the percentage of your available credit you use, affects your score: FCAC lists carrying a balance and being close to or over your limit among the factors. FCAC suggests using less than 30% of your total credit limit.
Space out credit applications
A credit card application creates a "hard inquiry" on your file, and FCAC says too many inquiries made too close together can lower your score.
Where does your credit history count?
- Renting an apartment
- A landlord may run a credit check as part of a rental application, and FCAC says a poor or limited credit history may affect your ability to rent a home. No credit history may lead a landlord to ask for more proof.
- Car financing
- Lenders check your credit to decide if they will lend you money, how much interest to charge and what credit limit to offer.
- Mortgage qualification
- For a CMHC-insured mortgage, CMHC requires at least one borrower (or guarantor) to have a credit score of 600 or more. If your Canadian credit history is limited, CMHC may consider an international credit report or a reference letter from your bank back home. Each lender also sets its own rules.
How do you move money to Canada?
When a financial institution sends or receives an electronic funds transfer of CAD $10,000 or more, in one transaction or several within 24 hours, it reports it to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), Canada's financial intelligence unit. The report is not a tax assessment.
- Bank wire transfer (SWIFT)
- Your home-country bank sends the money directly to your Canadian bank account. Ask both banks about their fees and exchange rate.
- Online money transfer services
- Online money transfer services move money between accounts in different countries. Compare their fees and exchange rates before you send.
- Foreign currency accounts
- Some Canadian banks allow you to hold USD or other foreign currencies.
- Declaring cash at the border
- If you bring currency or monetary instruments (such as cheques, money orders or bank drafts) valued at CAN$10,000 or more into or out of Canada, you must declare them to the CBSA. The CBSA can seize all of it if the full value is not reported, and it may be returned after a penalty of 5% to 50%.
Which free tool checks your own case?
- Document ChecklistTypical documents by application type
- Currency ConverterFees and funds in your own currency
Free, with no account. What you enter in a tool stays in your browser.
What do people ask?
Can a bank refuse to open an account because I have no job or no credit history?
Generally no. FCAC says a person with acceptable identification has the right to open a personal account at a bank, and its list of grounds for refusal does not include having no job or no credit history. A bank cannot require a first deposit or a minimum balance. It can refuse on listed grounds, such as reasonable grounds to believe the account is for illegal or fraudulent purposes, knowingly false statements, or not letting it verify your ID, and it must tell you in writing. If you think a refusal was wrong, contact FCAC. The First 30 Days in Canada guide puts banking in order with your other early tasks.
Do I need a SIN to open a bank account in Canada?
The Bank Act's identification list does not include a Social Insurance Number, but the Canada Revenue Agency says you need a SIN to open most types of bank accounts, so bring it if you have it. A SIN is free from Service Canada and you need it to work. The First 30 Days in Canada guide explains how to apply.
Does my credit history from my home country count in Canada?
Generally, no: Equifax and TransUnion track credit in Canada, so most newcomers start without a Canadian credit file. FCAC notes that some lenders may look at your credit history from another country, and you may need to bring that report and meet a bank officer. Ask your bank before you apply for credit. The Build Your Credit Score guide covers the first steps.
How do I check my credit score for free as a newcomer in Canada?
Ask the two credit bureaus, Equifax and TransUnion. FCAC says both give your credit report for free online, by mail or by phone. Equifax's score is free in every province and territory, and TransUnion's score is free in Quebec and Ontario. As a new resident you will likely have no Canadian file yet, which is normal. The Build Your Credit Score guide explains what the report shows.
How long does it take to build a good credit score in Canada?
There is no set timeline. FCAC says your score goes up when you pay bills on time and use credit responsibly, and credit bureaus update your report at least once a month, so progress shows up over time. Pay every bill on time and try to use less than 30 percent of your total credit limit. The Build Your Credit Score guide walks through secured cards and other first steps.
What is the difference between a debit card and a credit card in Canada?
A debit card takes money straight from your bank account, while a credit card lends you money that you repay later. A credit card is credit, and FCAC says lenders send information about your credit accounts to the credit bureaus. Your score goes up when you pay bills on time and use credit responsibly. The Build Your Credit Score guide explains how to use a first card.
How much money can I bring into Canada, and do I have to declare it?
There is no limit, but you must declare currency or monetary instruments valued at CAN$10,000 or more to the Canada Border Services Agency when you arrive. The CBSA can seize all of it if the full value is not reported, and it may be returned after a penalty of 5% to 50%. When a bank sends or receives an electronic funds transfer of $10,000 or more, it reports it to FINTRAC, Canada's financial intelligence unit. The report is not a tax assessment. The First 30 Days in Canada guide covers arrival.
Official sources
This page is based on law and policy published by the Government of Canada.