Banking and credit scores

A bank account and a credit history are two things to set up early in Canada: to receive your pay, pay rent and later borrow for a car or a home.

Your right to a bank account

According to the Financial Consumer Agency of Canada (FCAC), you have the right to open a bank account even if you:

• don't have a job;
• don't have money to deposit right away;
• are not a Canadian citizen.

You may need to go to a branch in person. The bank must give you information about fees when you open the account and written notice before raising fees.

ID to bring

Originals, not photocopies. One way to meet the requirement is 2 documents from a reliable source: one with your name and address, one with your name and date of birth, such as government-issued ID. For work permit holders, your passport and work permit are usually the main documents; ask the bank for its exact list.

What a credit score is

• A credit report summarizes how you have used credit (credit cards, loans).
• Scores usually range from 300 to 900; higher is better.
• Canada has 2 main credit bureaus: Equifax and TransUnion. They only track credit activity in Canada, so your history in Vietnam doesn't count.
• Lenders use your score to decide whether to lend and at what interest rate.

Building credit from scratch

• Pay bills on time: your score goes up with on-time payments and responsible use, and down with missed payments or too much debt.
• Don't max out your credit card limit.
• Check your credit report regularly for errors or signs of identity theft.

Note Don't give your SIN to a bank or anyone else unless it is required, and never lend your ID to others.