What Happens To Credit History When Moving Country?

Posted on January 18, 2021

As a specialist auto loans company, we work with people in all kinds of situations, including those who are new to Canada. Despite the global situation, Canada is still very attractive to people who want a new life. With that in mind, what happens to your Kitchener credit history when moving to a different country? If you have spent years or even decades building a good credit history, what happens when you move?

You have to start over.

Kitchener Credit history and moving to Canada

Despite the credit bureaus having a global presence and building credit reports in countries across the world, you cannot bring your credit history with you when you move to Canada.

The credit reference agencies blame the different data protection laws across the world but there must be more to it than that.

Whatever the real reason, if you move to Canada either temporarily or permanently, you have to begin your credit history again.

Building your credit history

Your old credit history will go dormant until it is used again. You will have to begin building a credit history here in Canada though.

There are a couple of things you can do to kickstart that:

Switch to an international bank before your move – Switch one of your accounts to a bank with a presence in your home country and in Canada. You will find it much easier to open a local account here when the bank knows you and knows you’re financially reliable.

Apply for a free overdraft with your bank – If your bank offers free or cheap overdrafts, they can help you build a credit history. Make sure to use the overdraft and settle it each month to help build your history.

Use a credit builder card – Special credit builder credit cards are designed to help build or rebuild a credit history. Use one for daily expenses and make sure to pay off the balance each month to avoid the high fees.

Get a phone – A mobile phone contract can also contribute towards your credit history, if you can get one. It won’t work miracles but every little helps. Having a bank account and a permanent address should be enough for a phone.

Pay your utilities –Some apartments include utilities in with rent. Others do not. All other things being equal, opting to pay your own bills can help contribute to a credit history.

Be patient – Credit histories are not built quickly. They take months and years to build up. However, even a small increase and a few entries of payments made on time can be enough to make a difference.

For those of you who know that you have a challenging credit situation, please visit Northway Ford Lincoln where we have a team of credit specialists ready to help you get approved for a car loan today!

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