Canadian Secured Credit Cards Are Good For New Immigrants

A few years ago when I was working with an earlier project with my company, I was required to get a U.S. credit card.

Being a resident of Canada I don't have U.S. citizenship or U.S. credit rating.

I felt the frustration one would have if they're in a new country. My good credit score and good credit practices didn't do me any good in another country.

Eventually I got a U.S. credit card with a small limit and it was secured by my companies reputation.

At the time I was frustrated because I've had excellent credit in Canada for 25 years. There was nothing to show that fact to a U.S. credit card company as Equifax U.S. didn't have any records of my credit standings.

New Immigrants to Canada required to re-start their credit.

I can imagine the frustration that a family who is immigrating into Canada might have. Even if they've had a house with mortgage, credit cards, lines of credits in their former country, they'll be forced to start all over again when they arrive in Canada.

Unless this family has a great deal of cash to work with they'll be forced to rent an apartment while they save up for a home. Renting doesn't affect your credit rating. They won't be able to get loans of any type unless they have sizable security deposits or other assets.

One of the quickest and easiest ways for the new immigrant to Canada to start their credit rating is to get a secured credit card. These credit cards can be obtained for as little as $75. The beauty of a secured credit card is that it reports to Equifax and TransUnion the same as a regular credit card. This means that it helps start a credit score in as little as one billing period.

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 fastest and most cost effective way for them to start their credit rating and move on to that home mortgage for their family.

Monty Loree is the founder of http://www.canadian-money-advisor.ca which helps Canadians better understand their money, credit and the financial industry in Canada. In our financial podcasts, we are interviewing industry experts who give our visitors the truth about the financial industry. Canadian Money Advisor is an important source for Canadians to learn more about their money. See our Canadian Secured Credit Card descriptions. Canadian Secured Credit Card discussion