Best Credit Cards for New Immigrants to Canada 2026

Credit Cards for New Immigrants: Your Options in 2026

When you arrive in Canada, your credit history from your home country doesn't follow you. Canadian lenders can't see your credit score from India, the Philippines, China, or anywhere else. You start from zero — which means most regular credit cards will reject you initially.

The solution: newcomer credit cards and secured cards designed specifically for people with no Canadian credit history. Used correctly, these cards help you build a strong credit score within 6–12 months.

Card	Type	Annual Fee	Credit History Required	Rewards
KOHO Prepaid Visa	Prepaid + Credit Builder	$0 (free tier)	None	0.5–2% cash back
Home Trust Secured Visa	Secured	$0	None	None
Capital One Secured Mastercard	Secured	$59	None	None
TD Cash Back Visa (Newcomer)	Unsecured	$0 first year	Newcomer program	1–3% cash back
Scotiabank Scene+ Visa (Newcomer)	Unsecured	$0 first year	Newcomer program	Scene+ points
RBC Avion Visa (Newcomer)	Unsecured	$120 waived yr 1	Newcomer program	Avion points
AMEX SimplyCash (Newcomer)	Unsecured	$0	Newcomer program	1.25–2% cash back

🇨🇦 Build Credit With No Credit History

KOHO's Credit Building feature reports your payment history to Equifax and TransUnion. Start building your Canadian credit score from day one — no credit check required.

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Secured vs. Unsecured Newcomer Credit Cards

Secured Credit Cards

A secured card requires a deposit (usually $200–$2,500) that acts as your credit limit. The deposit is held by the bank as collateral. You use the card normally, pay your bill, and the bank reports your payments to the credit bureaus (Equifax and TransUnion). After 12–18 months of responsible use, you can often upgrade to an unsecured card and get your deposit back.

Newcomer Unsecured Cards (No Deposit Required)

Major banks like TD, RBC, Scotiabank, and CIBC offer unsecured credit cards specifically for newcomers — no Canadian credit history required. These are part of their newcomer banking packages. You must typically open a bank account with them first and apply within 2 years of arriving in Canada.

KOHO Credit Building

KOHO offers a unique middle ground: it's a prepaid Visa (no credit check) with an optional credit building add-on ($7/month or included in paid tiers). KOHO makes a small secured loan in your name and reports monthly payments to the credit bureaus, building your score without requiring a traditional credit card.

How to Apply for a Newcomer Credit Card

Open a bank account first — Most newcomer credit card programs require you to have a chequing account with that bank. Visit a branch within 2 years of arrival.
Bring your documents — Passport, work/study/PR permit, COPR, and proof of Canadian address.
Apply in person or online — Some newcomer cards can be applied for online; others require a branch visit.
Start small — Use the card for recurring small purchases (Netflix, groceries) and pay the full balance monthly.
Monitor your credit score — Use Borrowell (free) or Credit Karma to track your score. It should start appearing after 3–6 months.

Credit Building Tips for New Immigrants

Pay in full, always: Carrying a balance damages your score and costs you interest at 19.99%+
Keep utilization under 30%: If your limit is $500, never owe more than $150 at statement time
Don't apply for multiple cards at once: Each application is a hard inquiry that temporarily drops your score
Keep old accounts open: Account age matters — don't close your first card even if you get a better one
Set up autopay: Missing payments is the fastest way to damage your score

Timeline: With a secured card or KOHO credit builder, most newcomers see a credit score appear at Equifax/TransUnion within 3–6 months and reach 650+ within 12 months of responsible use.

Credit Scores in Canada Explained

Canadian credit scores range from 300 to 900. Here's what the ranges mean for newcomers:

Score Range	Rating	What You Can Access
300–559	Poor	Secured cards only, high-interest loans
560–659	Fair	Some unsecured cards, car loans (higher rates)
660–724	Good	Most credit cards, standard auto loans
725–759	Very Good	Most products, competitive rates
760–900	Excellent	Best rates on mortgages, all products

Most newcomers can reach the "Good" range (660+) within 12–18 months with consistent responsible credit use.

Frequently Asked Questions

Can I transfer my credit history from my home country to Canada? +

Generally no. Credit histories are not transferable between countries. However, American Express has a Global Card Transfer program that allows applicants from select countries (including the US, UK, India, Australia) to apply for a Canadian Amex card using their foreign credit history. It's worth checking if your home country qualifies.

What credit score do I need to get a mortgage in Canada? +

Most major lenders require a minimum 620–640 credit score for a mortgage. The best mortgage rates go to borrowers with 720+. As a newcomer, focus on building your credit for at least 2 years before applying for a mortgage.

Is KOHO a real bank account? +

KOHO is not a bank — it's a fintech company that offers a prepaid Visa card. Your funds are held at a Canadian chartered bank (currently People's Trust) and are CDIC-insured. KOHO functions like a bank account for most purposes but doesn't offer loans or mortgages.

🇨🇦 Best Bank for Newcomers to Canada

KOHO accepts newcomers with no credit history required. Get a free Visa prepaid card, earn cash back, and start building your Canadian credit profile. No monthly fees.