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A new TD Bank survey has revealed that 59% of new Canadians who have applied for credit believe they would have a better living experience if they had improved access, and 79% say it’s difficult to build credit history in Canada.
Money Canada reports that the poll focused on people who have arrived in the past five years, a period when many ate trying to build a career, secure housing and begin saving or investing.
The Associate Vice President of the New to Canada at TD Bank, Mohammad Kara, said, “For newcomers beginning their lives in Canada, getting off to a strong financial start can be incredibly challenging without access to the credit they need.
“We recognize how critical it is for new Canadians to build a credit history as they establish themselves and set the foundation for their future here.”
While one might assume these hurdles are due to inexperience, the survey suggested a different cause with 68% of respondents saying they already knew about vtredit cards even before moving to Canada. 92% recognized the importance oof building credit in Canada.
The top challenges, according to the survey, were:
# Limited knowledge of credit card rewards programs (35%)
# Lack of familiarity with Canada’s financial system (31%)
# Being approved only for lower credit limits or loan amounts (31%)
According to the survey, these financial barriers have real-world consequences. Two-thirds (66%) expressed concern about their Canadian credit history, while 22% said their limited access to credit made it harder to maintain a comfortable lifestyle.
