Young black man standing in front of a building under renovation <\/p>\n
According to a new TD Bank survey<\/a>, 59% of new Canadians who have applied for credit believe they would have a better living experience if they had improved access, and 79% say it\u2019s difficult to build credit history in Canada.<\/p>\n The poll focused on people who have arrived within the past five years, a period when many are trying to build a career, secure housing and begin saving or investing.<\/p>\n “For newcomers beginning their lives in Canada, getting off to a strong financial start can be incredibly challenging without access to the credit they need,” explained Associate Vice President of the New to Canada at TD Bank, Muhammad Kara, in a recent statement.<\/p>\n “We recognize just how critical it is for new Canadians to build a credit history as they establish themselves and set the foundation for their future here,” Kara added.<\/p>\n While one might assume these hurdles are due to inexperience, the survey suggested a different cause with 68% of respondents admitting that they already knew about credit scores even before arriving to their new home in Canada, while 92% recognized the importance of building credit in Canada.<\/p>\n In fact, the majority had already tried to access credit, most often via credit cards (92%), followed by car loans (18%) and mortgages (13%). But among those who applied, 82% reported facing at least one barrier.<\/p>\n The top challenges, according to the TD survey, were:<\/p>\n Limited knowledge of credit card rewards programs (35%)<\/p>\n Lack of familiarity with Canada\u2019s financial system (31%)<\/p>\n Being approved only for lower credit limits or loan amounts (31%)<\/p>\n TD\u2019s report argues that these financial barriers have real-world consequences. Two-thirds (66%) expressed concern about their Canadian credit history, while 22% said their limited access to credit made it harder to maintain a comfortable lifestyle.<\/p>\n Read more: Here\u2019s how to retire in 10 short years<\/a> no matter where you live in Canada \u2014 even if you\u2019re starting with $0 savings<\/p>\n A shortage of credit access can affect people\u2019s lives in different ways, especially when trying to establish a new life in a different country. Respondents in TD\u2019s report, which surveyed 265 randomly selected newcomers in March of this year, indicated various financial problems, including 29% reporting increased financial stress or anxiety.<\/p>\n Story Continues <\/p>\n Turns out 28% of respondents reported limited ability to take out loans, with 27% reporting facing higher interest rates and difficulty securing housing due to a lack of credit access.<\/p>\n “Our survey revealed just how impactful credit challenges can be for Canadian newcomers\u201d, said Kara in a statement.<\/p>\n \u201cWith many new Canadians experiencing stress and anxiety, loan access restrictions, or difficulty achieving their unique financial goals, the need for tailored solutions is evident.\u201d<\/p>\n If you need a personal loan, consider comparison shopping using a loan consolidator, like Loans Canada<\/a>. Consolidators let you compare and find the best rates and you only need to fill out one application.<\/p>\n When asked what could help, one in three (34%) newcomers said they would benefit from better access to financial advisors who understand the specific challenges they face.<\/p>\n While access to personalized financial advice isn\u2019t always a realistic expense newcomers can afford to take on, there are more and more programs available within Canada\u2019s big banks to help newcomers find their feet.<\/p>\n In this case, TD offers a range of tools and resources that are tailored to those newly arrived in Canada, including credit cards with higher upper limits (up to $15,000) for eligible permanent residents, foreign workers and international students, as well as specific newcomer banking packages.<\/p>\n Is a new credit card is in your future? The best card in Canada could be the RBC\u00ae British Airways Visa Infinite<\/a>, with a $1,176 first-year value. Find out by comparing more than 140 cards in just 5 seconds<\/a> \u2014 your future self will thank you!<\/p>\n