How to Get a Credit Card with No Credit History in Canada
Securing a credit card without a Canadian credit history is feasible through secured cards, newcomer programs, and alternative strategies, especially for immigrants or young adults. These options help build credit quickly while minimizing risk for issuers.
| Option | Provider Examples | Key Requirements | Credit Limit Potential | Annual Fee |
|---|---|---|---|---|
| Secured Credit Card | Capital One, Home Trust | Refundable deposit ($500+); ID, SIN | Matches deposit | $0-$60 |
| Newcomer Programs | Scotiabank StartRight, CIBC | PR/Work permit; recent arrival (<5 yrs); income proof | Up to $15,000 unsecured | Often $0 first year |
| Authorized User | Any family cardholder | Permission from primary holder | Shares limit | None |
| Store/Retail Cards | Canadian Tire, Home Depot | Basic ID; in-store application | $500-$2,000 | $0 |
1. Opt for Secured Credit Cards
Secured cards require a cash deposit as collateral, which becomes your credit limit, making them ideal for no-history applicants. Providers like Capital One Guaranteed Mastercard accept deposits from $500, refundable upon closure after good standing.
Apply online or in-branch with ID, SIN, and proof of deposit funds; approval is near-automatic since risk is covered. Use responsibly—pay on time, keep utilization under 30%—to build a positive Equifax/TransUnion score within 3-6 months.
Many convert to unsecured cards later, releasing your deposit; fees are low ($0-$60/year), and rewards may apply. This entry point suits newcomers in Toronto or Vancouver needing immediate access.
2. Leverage Newcomer Banking Programs
Major banks target recent Permanent Residents (PR) or work permit holders with unsecured cards up to $15,000, bypassing credit checks via income/assets proof. Scotiabank's StartRight offers Scotia Momentum Visa; CIBC and RBC have similar within 1-5 years of arrival.
Visit a branch with PR card/COPR, job letter, paystubs, or foreign bank statements showing savings; open a chequing account first. Nova Credit integration recognizes foreign history for some, boosting limits.
TD and BMO provide up to $5,000 unsecured or secured fallbacks; apply early post-landing for best rates (12-19.99%). These build credit fast for Canada's 500,000+ annual immigrants.
3. Become an Authorized User
Join a family member's or spouse's credit card as an authorized user to piggyback on their history without a hard inquiry. The primary account's positive payment/activity reports to your credit file, often within one statement cycle.
Request the cardholder notify their issuer (e.g., RBC, Amex) to add you; provide your details for the card. Ideal for students or partners with no income, but ensure the primary pays on time to avoid shared negatives.
Limits share the main card's, aiding utilization ratios; popular in multicultural cities like Mississauga where family networks support newcomers.
4. Explore Retail and Prepaid Options
Store cards from Canadian Tire or Walmart approve based on basic ID and in-store apps, starting at $500 limits with no history check. They report to bureaus, helping scores rise quickly despite higher rates (19-29.99%).
Prepaid reloadable cards like KOHO offer credit-building "Credit Building" features via on-time payments, mimicking card behavior without debt. Transition to full cards after 6 months of use.
These suit low-risk starts for youth or gig workers in Montreal, with cash-back perks on everyday buys.
5. Build Credit Through Alternatives First
Rent-reporting services like Borrowell or FrontLobby add on-time payments to your file; public utility bills (Hydro One) may report too. Guaranteed Income Supplement (GIS) or child benefits qualify as "income" for apps.
Avoid payday loans; instead, get a small personal loan from credit unions like Vancity, repaid steadily. After 6 months, reapply for unsecured cards like Tangerine Money-Back (no fee).
Application Best Practices
Gather docs: SIN, ID, address proof (lease/utility), income evidence (T4s, letters). Apply in-branch for manual reviews, especially newcomers—branches in immigrant hubs like Brampton offer multilingual help.
Pre-approve via online estimators (BMO, Scotiabank); limit apps to 1-2 to dodge inquiries. Monitor free weekly Equifax/TransUnion pulls via Borrowell/Credit Karma.
Common Pitfalls to Avoid
Don't max limits—aim <30% usage; pay full balances monthly to dodge interest (avg 20%). Multiple apps tank thin files; space 3-6 months apart.
Foreign credit rarely transfers without Nova; ignore "instant approval" fintech scams. Age 19+ (19 in NB/NS) required; students need guarantors sometimes.
Timeline to Unsecured Card
3-6 months of on-time secured use yields scores 650+; upgrade via issuers or switch to low-rate cards like PC Financial (12.99%). Track via apps; consistent habits yield $5,000+ limits yearly.
Newcomers average unsecured access in 12 months via programs. Patience pays—Canada's system rewards responsibility, unlocking mortgages/auto loans later.
Verify offers at bank sites as of February 2026; rates vary by province.
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