Canadian CBer's

[breeze]

We've had quite a few questions from Canadian CBer's lately. We're wondering how many of you are there, and should we start a Canadian credit forum here on CB. We don't know much about it, there doesn't seem to be any resource like this for Canadians - at least, not the last time I looked.

[azntg]

If I may ask, what happened to our US/Canada border resident members who seemed to be quite knowledgeable about the Canadian credit industry?

[NapaStyle]

My fiance is Canadian and we have split our time between Canada and the US for almost 8 years, so a CDN area would be great! I did pull his credit reports with his US SS# and absolutely nothing came up. His mother said it is completely different up there, that they do not rely on credit reports at all and that she has never even seen hers! Not sure how accurate that is....

 

Anyways, it's an interesting balance because in the states HE is the one with the income and I'M the one with a credit score, yet our car loan and long standing VISA are in his name up through RBC Royal Bank, so it's a shame bc I don't feel like we are getting credit for the fact we paid off a 20k car loan, and have never had a late payment on the VISA in over 8 years. : / Our bank accounts and HSBC Platinum VISA and Macys red card are all joint accounts, yet RBC says they can't add me, as an American to his RBC VISA, so that TL doesn't appear on my reports which is disappointing bc it has a nice big limit and established history.

 

Anyhow, I think a CDN board would be great very helpful indeed for us dual citizens and Canadians.

[breeze]

Thanks! I deal with RBC. They operate in the US. Perhaps he could check with a US branch of RBC, and get a US credit card. It would be worth a try. Here, they are extremely nice about everything and go out of their way to accommodate good customers.

[virginiabound]

Thanks! I deal with RBC. They operate in the US. Perhaps he could check with a US branch of RBC, and get a US credit card. It would be worth a try. Here, they are extremely nice about everything and go out of their way to accommodate good customers.

 

I have banked with Royal Bank practically all my life. Before moving to Virginia 2.5years ago, I opened up an account with RBC Centura (now RBC Bank).

 

The only thing with RBC Bank is that if you have an address in the US, they may not allow you to open an account if they do not have a branch in your state. I think they are in FL, GA, SC, NC, and VA. Of course, I live in NoVA and my closest branch is 4 hours away!

 

As I stated in another thread about Canadian credit laws, it all depends on what province you are in, as each one has different laws.

 

NapaStyle, the reason they cannot add you to his RBC account is because you do not have a Social Insurance Number, which would be required, much like a Social Security Number.

 

Credit up in Canada is actually much more difficult to obtain than down here in the US. For my RBC Visa I had to wait 3 weeks for the application to come back!

Same thing with mortgages...Canada didn't have any type of ARM. I believe only fixed mortgages...and they want proof that you can pay it back...lots of it!

 

I only ever had 2 CCs in Canada. Suited me fine. Never worried about my credit score at all.

In fact, I still receive auto CLI on the two cards I have.

 

Down here...in order for my DH and I to do anything, I had to jump into the credit craze down here! And because DH didn't have very good credit, I joined the CB to learn the ropes on his and now my rights.

 

Anyway, I seem to have gone on long enough, so I will stop

[Corvillus]

Another Canadian here. As was said above, credit is much more difficult to obtain. Credit limits tend to be lower on most unsecured accounts, and interest rates much higher. For example, interest rates between 15% and 20% are standard on Canadian credit cards (anything below tends to be marketed as "low rate"), while on US cards that would be considered subprime.

 

Also, credit scores do have some impact here, but not the same as in the US. For credit cards it tends to be important, while for lines of credit and mortgages, they expect to see a lot of proof of income as well.

 

One thing that is different here though, for the most part APR jackage and credit limit decreases are unheard of here. The rates may be high, but if you make your payments, they don't change. You also don't see quite the same level of teaser offers and solicitation here that you see in the US.

[jyj]

I'm a Canadian who just moved to the US about 6 months ago.

 

I can say that I never once requested my Canadian credit reports (actually, not till I moved down here and got curious about it). I still have a mortgage (with a prime minus 0.25% rate), substantial line of credit (for me) and one credit card (with rate of something like 19%), and never had to think once about what my credit score was...or worry about not getting credit. It is true that they always asked for proof of income.

 

I banked with CIBC since I was a child and continue to do so - and they have treated me well/fairly the whole time. My credit card has never changed interest rates, though, i always PIF for the 10 years or so that I had it, and got a CLI without problems if I asked and sometimes without asking.

 

But moving here has been a brand new ball game. Thankfully there is places like CB for some resources and people who know so much. I never dreamed it would be so hard to get a credit card....or a bank account, cable, a cell phone, or electricity for that matter!! I never understood the "importance" of "building your credit" until I moved here. Regardless of how much money I make here...I am not credit worthy in the US. Maybe I'm naive, but back home it seemed if I made enough money and could prove it, I would get credit that would reflect that. Definitely feels different, but I might feel differently if I was from the US and moved to Canada to start out fresh!

[Credit Cra]

learned, thanks

[mightysergei]

Hi there,

 

I am a newbie to the forum and I am also from Canada. Great site you have here...very informative. I'm wondering if a Canadian content section is still in the works?

 

Thanks!

[breeze]

That's why we have this thread up. To see if there is enough interest.

[JVR]

would love to see such a new forum...

 

:-)

 

J

[arameth]

I'm a Canadian ExPat, and would love to see more info. Though we currently live in the States, we're not ruling out a return back, and wanted info on how to build credit history there, and wanted to do so before actually moving back. We'd prefer our history in the US not follow us there

[virginiabound]

arameth,

 

Canadian and US credit reports will not transfer. That's why when people move from Canada to the US (such as myself) or vice versa, they basically have to start out fresh.

 

There are some exceptions where certain places can check your US or Canadian credit history. Personal examples were JC Penney, Macy's and Target. Also, since I bank with RBC in Canada and RBC Bank down here, it is possible for them to use my SIN to pull up my Canadian history for a US CC.

 

Also, if you have an AMEX they are able to give you a card if you had one in the US or Canada.

 

 

Just a few tips for those who may be thinking of moving from Canada to the US.

[smart1n]

I am not from Canada, but how about an international type forum to include all non-USA countries? I can't imagine all the folks coming to the US are only from Canada.

[Corvillus]

I am not from Canada, but how about an international type forum to include all non-USA countries? I can't imagine all the folks coming to the US are only from Canada.

 

Agreed, although I don't think it's so much for the people coming to the US from other countries (what's being said on this board applies completely then). It's more for people living in other countries that are looking to build / rebuild credit or optimize the use of credit products, since the credit policies often differ significantly from the US.

[breeze]

At this point, there is no way to transfer one's credit records and history from one country to another, regardless of the country. Anyone coming to the US, and wanting to build credit in the US, can follow procedures (explained here on CB) that Americans use when building credit for the first time.

 

What we've been wondering about is residents of Canada - there is no definitive website about credit for Canadian residents. I see a lot of questions from Canadians, and I see people visiting from Canadian ISP's, and I was hoping this thread would draw out those folks so we could see if it would get our visiting friends to speak up and let us know if there is interest.

 

Does this make sense?

[badcred]

Canuck here. I just found the site. Hopefully i'll be able to straighten out my credit woes. It's frustrating because they were so long ago and i've been responsible for the last 5 years. =/

[breeze]

[Corvillus]

Canuck here. I just found the site. Hopefully i'll be able to straighten out my credit woes. It's frustrating because they were so long ago and i've been responsible for the last 5 years. =/

 

Well, a lot of the core financial planning advice (i.e. the non legal dispute related stuff) for building or rebuilding credit, is pretty much exactly the same here in Canada as it is in the U.S. Basically get any credit card you can (secured if you must), and use it responsibly, and mainly focus on lowering your overall debt to available credit ratio, and if possible, never carry balances, to increase FICO score. Then apply for better credit cards as you can get them, take whatever preapprovals you get offered initially as your goal is to keep getting extended credit without actually using it. That said, 2 years before getting a mortgage, stop applying or accepting new credit unless you need it. While FICO isn't the be all and end all here like it used to be in the U.S., it's still important. (The only difference is that in the U.S. FICO was enough to get approved for almost any loan, here it almost never is sufficient by itself, but is still required).

 

The stuff that would be different is the legal processes, such as disputing items on credit reports, dealing with unscrupulous practices of CA's, etc. And I personally don't even know too much about that process here in Canada, so I wouldn't mind seeing a forum for it.

[badcred]

Canuck here. I just found the site. Hopefully i'll be able to straighten out my credit woes. It's frustrating because they were so long ago and i've been responsible for the last 5 years. =/

 

Well, a lot of the core financial planning advice (i.e. the non legal dispute related stuff) for building or rebuilding credit, is pretty much exactly the same here in Canada as it is in the U.S. Basically get any credit card you can (secured if you must), and use it responsibly, and mainly focus on lowering your overall debt to available credit ratio, and if possible, never carry balances, to increase FICO score. Then apply for better credit cards as you can get them, take whatever preapprovals you get offered initially as your goal is to keep getting extended credit without actually using it. That said, 2 years before getting a mortgage, stop applying or accepting new credit unless you need it. While FICO isn't the be all and end all here like it used to be in the U.S., it's still important. (The only difference is that in the U.S. FICO was enough to get approved for almost any loan, here it almost never is sufficient by itself, but is still required).

 

The stuff that would be different is the legal processes, such as disputing items on credit reports, dealing with unscrupulous practices of CA's, etc. And I personally don't even know too much about that process here in Canada, so I wouldn't mind seeing a forum for it.

 

Ya, I've gathered as much in my own reading. It seems like the laws are at the provincial level. Ontario has a Consumer Reporting Act. Quebec has a law on it as well. They are basically the same as the american ones, although procedure can vary slightly between provinces. You have a right to request your credit report and can contest false information to have it removed. The biggest difference is that the statue of limitations is 6 years here instead of 7. This is a big plus for me because even if i can't get my two negatives removed, they will fall off next year anyway.

[Burgerwars]

I'm not Canadian (I've been there a few times), but have applied for quite a few Canadian credit cards in the 1980s. I was quite successful then, but I think things would be more difficult if I tried the same now.

 

At the same time I opened a checking account with ATM card at Royal Bank of Canada (also easier to do back then). I never could get a credit card from them, since you need to be a Canadian resident for that. Earlier this year I inquired with RBC Bank USA about opening a checking and credit card account with them. As mentioned, you need to live in their marketing area to open an account. But there's one exception: if you're already an RBC Royal Bank customer and have a client card (their ATM card) you can apply. Yippee for me. I was able to initially open my checking and debit card account by mail. They opened me their "Embassy Checking Account" which is designed for their Canadian customers, but it didn't matter. The account is almost exactly the same as their domestic checking accounts, except a slightly higher minimum balance requirement to avoid a monthly fee. I'm now able to use their internet one sign on process, that lets me view both my U.S. and Canadian accounts at the same time, and transfer funds between them if I wish. I then opened a RBC Bank USA Visa card. They gave me a $20K limit (I have 800+ credit). The card does look similar to their Canadian version, but there are some design differences. It took over 20 years, but I was finally able to get a credit card with something close to the Royal Bank of Canada name.

Edited June 16, 2009 by Burgerwars

[Burgerwars]

At this point, there is no way to transfer one's credit records and history from one country to another, regardless of the country. Anyone coming to the US, and wanting to build credit in the US, can follow procedures (explained here on CB) that Americans use when building credit for the first time.

 

This was 20 years ago, but when I mailed applications back to Canada to apply for credit as a U.S. resident (for stores like Eatons, The Bay, Canadian Tire, etc.), I saw inquires made on my Experian report (I think it was still TRW back then), made from either credit reporting agencies there, or the credit grantor themselves. While credit may not transfer, they can still inquire. At that time I wrote my U.S. social security number on these applications, and they sure knew what to do with it.

[Corvillus]

At this point, there is no way to transfer one's credit records and history from one country to another, regardless of the country. Anyone coming to the US, and wanting to build credit in the US, can follow procedures (explained here on CB) that Americans use when building credit for the first time.

 

This was 20 years ago, but when I mailed applications back to Canada to apply for credit as a U.S. resident (for stores like Eatons, The Bay, Canadian Tire, etc.), I saw inquires made on my Experian report (I think it was still TRW back then), made from either credit reporting agencies there, or the credit grantor themselves. While credit may not transfer, they can still inquire. At that time I wrote my U.S. social security number on these applications, and they sure knew what to do with it.

 

Yeah, I think a lot of banks can inquire against either the Canadian or US CRA's. Off the top of my head, TD, RBC, BOA (MBNA in Canada), BMO (Harris in the US) and Citi can since they do business in both countries, so long as you authorize them to. That said, I don't think they will except in certain cases.

 

Also, coincidentally enough, apparently Canadian residents can open BOA checking accounts in branch.

Edited June 16, 2009 by Corvillus

[Burgerwars]

If a Canadian forum is added, I'm wondering if CB's will change their banner/logo. You might need to add a maple leaf in there next to the stars and stripes.

Edited June 17, 2009 by Burgerwars

[webworm98]

Sort of questions

 

Is it really true the U.S. citizens can move to Canada and do fresh start or do they still check U.S. bureau?

 

Is it easier to get a Job in Canada, than in the U.S.?

 

How hard is to move to Canada?

Where is the cheapest place to live in Canada?