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Does my EU or UK credit history count in Canada?

Does my EU or UK credit history count in Canada?

We work a lot with newcomers to Canada. Despite the global situation, our country is still an attractive place to relocate to. Decent employment, respectful society, a great work ethic and a landscape that makes the heart sing are just some of the reasons to move here.

But what happens to your credit history if you move across the world?

In a global economy where credit reference agencies have a presence in most countries, can you take your credit history with you when you move?

Apparently not.

Not so global presence

Despite a presence in Canada, the EU, UK and other countries across the world, agencies like Equifax only collate your credit history for the country you’re in.

If you move country, you have to start over.

It doesn’t make a whole lot of sense but the agencies say different data protection laws across the world make it difficult to make your credit history relevant in other regions.

So if you do move to Canada from the EU or elsewhere, you will have to start a new credit history in your new home.

Starting over

Depending on your situation, starting over might not be a bad thing. For those with a good credit history, it will stay in place for if you ever return home, so all is not lost.

In the meantime, you’re going to have to begin building a credit history from scratch.

That means:

Opening bank accounts with an international bank with a presence in Canada and your home country – Credit agencies may not share information across borders but banks can. Using a bank with a presence at home and in Canada could help give you a head start.

Use a credit builder credit card – Specialist credit builder cards can help get you established here in Canada. Use it for everyday purchases and pay off the balance every month to avoid the high fees.

Get a phone – If you’re staying in Canada for a while, getting a phone contract will help you build credit. Some networks may not approve a contract but some might. Setting up automatic payments with your new bank account should help you begin building a credit history.

Pay some utilities – If you’re renting an apartment in Canada, you’re likely to be paying utilities. These will help you build a credit history over time while also supplying essential services.

Use a streaming service – Streaming services like Netflix, Hulu, HBO and others can all add to your credit report. They won’t do much for your score but they can be used to make an imprint on your score to help build it out a little.

Give it time – Credit histories are built up over months so once you have a few of these steps in place, you’re going to have to give it time to work.

If you have poor or no credit and need a car loan, contact Car Nation Canada today. We can help!

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