Fortunately, building credit in Canada can be relatively straightforward. Many banks, including RBC, offer credit cards specifically designed for students and newcomers, making it easier to get approved and start establishing a credit history early.
How can international students build credit in Canada?
International students can start building credit by opening a credit card, setting up a cell phone or internet plan in their name, and paying bills on time. These activities may be reported to Canada’s two main credit bureaus, Equifax and TransUnion.
Using a credit card responsibly is one of the fastest ways to establish credit. Paying your balance on time, staying well below your credit limit, and avoiding missed payments can help you build a strong credit score over time.
How credit works in Canada
A credit score is a number that reflects how reliably you borrow and repay money. In Canada, credit scores generally range from 300 to 900. The higher your score, the more trustworthy you appear to lenders.
Here’s how credit scores are typically categorized:
- 760+: Excellent
- 725–759: Very good
- 660–724: Good
- 560–659: Fair
- 300–559: Poor
Equifax and TransUnion each calculate credit scores a little differently, so your score may vary slightly between bureaus. That said, they generally consider the same five factors:
| Factor | What affects it | Why it matters |
|---|---|---|
| Payment history (35%) | On-time payments, missed payments, bankruptcies and delinquencies | Lenders want to know whether you reliably repay what you borrow. |
| Credit utilization (30%) | How much of your available credit you use | Using too much available credit may signal financial stress. |
| Length of credit history (15%) | The age of your credit accounts | Longer histories give lenders more information about your borrowing habits. |
| Application frequency (10%) | Frequency of applications and hard credit inquiries | Applying for multiple credit products in a short period can lower your score. |
| Credit mix (10%) | Types of credit accounts you have | Managing different forms of credit responsibly can strengthen your profile. |
Can international students get credit cards in Canada
Yes, international students and newcomers can often qualify for Canadian credit cards even without an existing Canadian credit score.
Typically, you’ll need to show government-issued identification and proof of enrolment at a Canadian school. You must also meet the age of majority requirements in the province or territory where you live.
How to pay for school and have a life—a guide for students and parents
Many banks encourage students to open a Canadian bank account alongside a credit card so it’s easier to manage payments. Accounts like the RBC Advantage Banking account for students may even earn you rewards points on your spending.
Some banks also pair student bank accounts with rewards credit cards tailored to common student expenses. For example, the RBC Ion Visa and RBC Ion+ Visa both offer accelerated rewards of 1.5x anbd 3x the points, respectively, on categories such as groceries, dining, food delivery, rideshare, and streaming services. Students who prefer cash back may consider cards like the RBC Cash Back Mastercard, which offers unlimited cash back on eligible purchases.
6 ways to start building credit
Building a strong credit score takes time, but consistent habits can make a big difference. Here are some easy strategies that can help you get ahead.
1. Apply for a student or newcomer credit card. These credit cards are usually easier to apply for, with more relaxed eligibility requirements and low or no annual fees. If you are new to Canada and want a no-barrier starting point, the RBC ION Visa has no annual fee, making it one of the most accessible starter cards at a major Canadian bank.
2. Consider a secured card if needed. If you’re unable to qualify for a traditional student card, a secured credit card can help you start building credit. You’ll provide a refundable security deposit that becomes your credit limit, but secured cards have near-guaranteed approval so you can start building credit.
3. Pay your balance on time. Your payment history is the single biggest factor affecting your credit score. Paying your balance on time every month can help you establish a strong credit profile. Many banking apps, including RBC’s, allow you to set up payment alerts or automatic payments to help you stay on track.
4. Keep your credit utilization low. Try to use less than 30% of your available credit limit. For example, if your credit limit is $1,000, aim to keep your balance below $300.
5. Put recurring bills in your name. Setting up a phone or internet plan in your name can help establish a payment history, especially if your rent or utilities aren’t included in your credit file. This is an easy credit-building opportunity.
6. See if your rent payments can be reported. Some landlords and rent payment platforms report on-time rent payments to the credit bureaus. These can be a huge boost to your score.
