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    New Immigrants Should Get Canadian Secured Credit Cards

    A few years ago, me and my family migrated to Canada from Asia. Fortunately, I was quickly employed but my new job required me to obtain a Canadian credit card. As a new resident of Canada, this presented a dilemma because I still do not have a Canadian citizenship and worse, I do not have a credit history in my new home country. One of the requirements in obtaining a Canadian credit card is that I should have a good credit history here.

    For 25 years, I have maintained an excellent credit score in my home country but those did not matter in Canada because credit card providers here do not have any record of my credit standings. I felt the frustrations of every person living in another country. My good credit score and good credit practices from where I came from do not matter in the Canada or in any other country. I was completely lost.
    Fortunately, the firm that I was working for has good reputation and this helped me secure a Canadian secured credit card although with a small credit limit.

    Let me discuss with you the importance and benefits of a Canadian secured credit card for immigrants.

    New immigrants in Canada required to re-start their credit

    Because new immigrants are required to build their credit history in Canada I sympathize with families who migrated to the country who wanted to acquire a credit card in their new country. All your mortgages, credit history and lines of credits in your former country do not matter if you want to have a Canadian credit card because you are required to establish your credit history here.

    This can pose a major challenge to some immigrants as they will be forced to transact in cash if they do not have any credit card. But cash transactions do not build or start any credit history or rating. Immigrants will not be able to get any type of loans if they do not have any credit history in Canada unless they have sizable security deposits or other assets to show.

    One of the quickest and easiest ways for the new immigrant in Canada to start their credit rating is to get a secured credit card. These credit cards can be obtained by depositing a security fund between $75 and $300. The beauty of a secured credit card is that it reports to Equifax and TransUnion the same as a regular credit card. This is a very important feature because it helps gain credit score in Canada.

    Another important benefits of these secured credit cards can be used in the same way you use a regular credit card. There are many companies in Canada that offers these secured credit cards.

    Once you obtain a good credit history, you can then qualify to apply for unsecured credit cards. Every family that immigrates to Canada has hopes and dreams of owning a home, car and living the Canadian lifestyle. A secured credit card might just be the fastest and most cost effective way for them to start their credit rating and move on to that home mortgage for their family.

    Article Created: 2013-09-24
    Article Updated: 2013-09-24

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