A significant number of new Canadian immigrants believe improved credit access can enhance their lifestyles, according to TD's latest findings.
Building Credit in Canada: Challenges and Solutions for Newcomers
A recent survey has shed light on the financial struggles faced by new Canadians, particularly in relation to credit access and understanding.
According to the survey, 29% of new Canadians experience increased financial stress or anxiety due to a lack of access to credit, while 31% face challenges due to a lack of knowledge about the Canadian financial system. This lack of credit access is also identified as a limiting factor for taking out loans by 28% of new Canadians.
The survey further revealed that 59% of new Canadians who arrived within the last five years agree they would have a more positive living experience in Canada if they had better access to credit. This is supported by the fact that 92% of new Canadians believe it is important to build a credit history in Canada.
Difficulty securing housing and inability to save or invest for future goals are also issues faced by 27% and 24% of new Canadians, respectively, due to a lack of access to credit. Higher interest rates are experienced by 27% of new Canadians as a result of this lack of access.
However, there is a silver lining. Sixty-eight percent of new Canadians were already familiar with credit scores before arriving in Canada, and among those who have applied for credit, only 82% faced challenges during the application process.
The top three types of credit new Canadians have applied for are credit cards (92%), car loans (18%), and mortgages (13%).
To help new Canadians navigate the Canadian credit system, TD Bank offers financial advice, credit education, and tools specifically designed for newcomers. This includes access to financial advisors who understand the challenges faced by new Canadians, which is crucial since about one-third of newcomers have identified this as a key factor in improving their credit.
New Canadians can also find financial advisors through various institutions such as banks, credit unions, insurance companies, and independent financial planning firms. These advisors provide guidance on savings, investments, and credit-building strategies.
Educational resources are often embedded in these advisory offerings or available through government-supported platforms like the Financial Consumer Agency of Canada. These resources explain how to build credit, manage debt, and use credit products responsibly.
In conclusion, using newcomer-focused programs from banks like TD, combined with selecting the right financial advisor through regulated institutions as advised by government resources, provides new Canadians a practical pathway to build and improve their credit history in Canada.
[1] TD Bank's newcomer-specific credit education and advisory tools [2] Access to financial advisors at banks or credit unions [3] BDO's business-focused financial advisory services [4] Additional tailored advisory services from firms offering wealth management [5] Personalized financial planning for newcomers
- To help navigate the complexities of the Canadian credit system, new Canadians can utilize TD Bank's specialized credit education and advisory tools designed specifically for newcomers.
- Educational resources, such as those offered by government-supported platforms like the Financial Consumer Agency of Canada, provide essential guidance on building credit, managing debt, and using credit products responsibly, which can aid personal-finance and business endeavors in the pursuit of education-and-self-development.
