June 17, 2014 | In: Trivia
How Much Credit Do Canadian Banks Give You If You Don’t Have a Credit History?
Newcomers to Canada realize, within a few weeks, that having a credit card makes a lot of things easier of them. They can shop easier, they don’t have to pay transaction fees, and they can shop online anywhere. However, with no credit history whatsoever, will banks give newcomers credit cards, and, if yes, then what is the credit limit on these cards?
The answer to the first question is “yes”, banks do give credit cards to newcomers as long as they have a bank account and a permanent residency status in Canada (some people on special visas are able to get credit cards from the bank as well). So what about the second question? What is the credit limit on credit cards for newcomers?
I noticed that all newcomers get a credit limit of $500 – yes, I know, it’s not a lot, but it seems to be a standard. Any bank you go to, the credit limit will be $500 – no exceptions. It seems that $500 is the risk that Canadian banks are willing to take with newcomers (because newcomers can always return to their original country without settling their credit cards).
Will there be fees on these credit cards?
Typically, these credit cards will have no fees whatsoever (since they are pretty basic). Credit cards that have fees are usually those with perks and a higher credit limit.
Is it a good idea for a newcomer to have a credit card?
Definitely! A credit card makes many transactions easier (you can also pay recurring bills using your credit cards without incurring any fees) and will help the newcomer build a credit history – which is something necessary to get a housing or a car loan.
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