How can I build my credit score as a newcomer in Canada?

There are a few steps you can take to build your credit history in Canada: Get a credit card and use it regularly for things like groceries and entertainment. Pay your bills on time and in full if possible : Consider setting up automatic payments on recurring bills to ensure you never miss a due date. Use credit responsibly : Keep your balance fairly low, relative to your credit limit. Avoid reaching your credit limit every month. Check up on your credit : Keep track of your credit report and credit score, and be sure to follow-up with the credit bureaus if there are any errors.

Can any newcomer get a credit card from BMO?

Yes, you can. As a newcomer in Canada, you may apply for an unsecured credit card with a limit of up to $5,000 with no credit history. If you don’t qualify for an unsecured credit card, don’t worry – you can still apply for a secured credit card where you have to pay a deposit of a certain amount to open your account.

What happens if I go over my credit limit?

If you go over your credit limit, you may be charged an over-limit fee on your next billing cycle. It’s also important to remember that exceeding your limit can affect your credit score.

What is a good credit score?

A higher credit score will help you qualify for loans and lower interest rates when you borrow. This will help you get a mortgage, buy a car, get a loan or line of credit and more. Here’s a quick breakdown: Poor (300 – 559) Fair (560 – 659) Good (660 – 724) Very good (725 – 759) Excellent (760+)

Newcomers to Canada

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Credit cards for Newcomers to Canada

BMO eclipse rise Visa* Card

Newcomers
Visa
No Fee

Welcome offer: You deserve to be rewarded! Get 20,000 points and a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee.^91,^§§ Plus, earn up to 5,000 bonus points every year!^94,⁹⁵Earn BMO Rewards points^9B and redeem points for travel, gift cards, merchandise and more

$0.00Annual Fee⁸
21.99%for Purchases⁸
23.99%for Cash Advances⁸
(21.99% for Quebec residents)⁸

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BMO CashBack^® Mastercard^®*

Newcomers
Cash back
No Fee

Welcome offer: Get up to 5% cash back in your first 3 months^‡‡ and a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee.^§§Earn more on groceries and get cash back for all kinds of purchases – even bill payments!^2B

$0.00Annual Fee⁸
21.99%for Purchases⁸
23.99%for Cash Advances⁸
(21.99% for Quebec residents)⁸

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BMO AIR MILES^®† Mastercard^®*

Newcomers
Air miles
No Fee

Welcome offer: Get 1,200 AIR MILES Bonus Miles^‡ (that’s enough for $120 towards purchases with AIR MILES Cash) and a 0.99% introductory interest rate on balance transfers for 9 months with a 2% transfer fee.^§Get Miles and use Miles for travel, merchandise and more²⁴

$0.00Annual Fee⁸
21.99%for Purchases⁸
23.99%for Cash Advances⁸
(21.99% for Quebec residents)⁸

learn more

What you should know about credit cards

A credit card is a way for you to borrow money from a financial institution like a bank. You’re expected to pay back what you borrow by a certain date to avoid extra charges. If you miss a payment, you’ll have to pay the amount you owe plus a percentage of that amount, also known as interest.

Every credit card has a spending limit (or a credit limit) that you should avoid exceeding. For example, if a card has a credit limit of $5,000, it means you can spend up to $5,000 using this card.

Your credit history is a record of how responsible you are with borrowing money, such as whether you make your payments on time.

By building a credit history, you’ll get a credit score, which is a number between 300 and 900 that represents how well you borrowed money and paid it back.

Many companies check your credit score when deciding to lend you money and how much you can borrow, whether it’s for a credit card, mortgage or loan. The higher your credit score, the more likely a bank is to lend you money. This is why it’s good to start building your credit history as soon as you move to Canada.

The BMO CashBack^® Mastercard^®* lets you easily earn cash on all your purchases, and redeem your cash back how and when it best suits you.

Conveniently cash out – You can choose if you want your cash as a recurring payment or as a one-time lump sum. Redeem any time for as low as $1 or set up an automatic recurring deposit starting at $25.
Flexible deposit options – Choose to deposit your cash back into your BMO chequing, savings or InvestorLine account.
Put it back on your card – Redeem your cash back as a statement credit.

With the BMO AIR MILES^®† Mastercard^®*, you can use your AIR MILES^®† Reward Miles for more than just travel. You can also use them for merchandise, events, attractions and even AIR MILES Cash Rewards at participating AIR MILES Partners.

Travel Rewards – Redeem your Miles to book your flights, hotels, cruises, vacation packages and car rentals.
Dream Rewards – Use your Miles on something special for you or your home. Or how about a spa pass? Or movie tickets? There’s so much to choose from.
AIR MILES Cash Rewards – Why wait? Instantly use your Miles online or in-store at participating Partners towards your everyday purchases.

Ready to apply for a credit card? Visit us at a BMO branch and we can chat about your options in person.

To apply for a credit card, you’ll need to provide some information about yourself, including your legal name, date of birth, contact info, SIN, address, employment status, income source(s), and rent or mortgage amount. You’ll also need to provide proof of your New to Canada status, such as your Canadian Permanent Resident Card, confirmation of Permanent Residence (IMM 5292 or IMM 5688), or your work or study permit (IMM 1442).

Also, be sure to bring two pieces of ID with you when you come into a branch.

Digital features and security at your fingertips

Give your financial health a boost with online and mobile banking tools. Enjoy more control over your credit card and a better understanding about how you’re using it.

Safety and security
Can’t find your card? No worries, you can lock and unlock it, report it lost or stolen, or reset your PIN any time.
Financial insights
Stay on top of your spending with a personalized look at your money.
Credit score
Get free, 24/7 access to CreditView with no impact to your credit score.
Detailed transaction view
Get a detailed view of when and where you made your purchases on the BMO mobile app.

FAQs

No, using your debit card to make payments won’t go towards building your credit. Here’s why:
When you pay with a credit card, you’re borrowing money from the card issuer. If you pay back the amount you borrowed on time, you’re basically showing your bank that you can be trusted to borrow money and pay it back by the due date – and this is how you build your credit. However, when you’re paying with a debit card, you’re not borrowing money from the bank; you’re spending your own. You’re not showing the bank that you can responsibly borrow money and pay it back. That’s why you can’t use your debit card to build your credit.
A higher credit score will help you qualify for loans and lower interest rates when you borrow. This will help you get a mortgage, buy a car, get a loan or line of credit and more. Here’s a quick breakdown:
- Poor (300 – 559)
- Fair (560 – 659)
- Good (660 – 724)
- Very good (725 – 759)
- Excellent (760+)
There are a few steps you can take to build your credit history in Canada:
- Get a credit card and use it regularly for things like groceries and entertainment.
- Pay your bills on time and in full if possible: Consider setting up automatic payments on recurring bills to ensure you never miss a due date.
- Use credit responsibly: Keep your balance fairly low, relative to your credit limit. Avoid reaching your credit limit every month.
- Check up on your credit: Keep track of your credit report and credit score, and be sure to follow-up with the credit bureaus if there are any errors.
How to improve your credit score