One in five say this issue affects their ability to live comfortably in Canada
Most newcomers who arrived in Canada within the last five years say that better access to credit would improve their living experience, according to a survey released by TD Bank Group.
The findings show that 59% of respondents who have been in Canada for less than five years believe improved credit access would enhance their quality of life, while 79% say it is challenging to build a credit history in the country.
The survey, conducted by The Harris Poll Canada in March, found that 68% of newcomers were familiar with credit scores before arriving, and 92% understood the importance of establishing a credit history. Despite this awareness, barriers remain.
Among those surveyed, 80% had applied for credit since arriving. Of these, 82% reported difficulties in the application process. Common obstacles included limited knowledge of credit card rewards programs (35%), lack of familiarity with the Canadian financial system (31%), and being approved for lower credit limits or loan amounts that did not meet their needs (31%).
“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,” said Muhammad Kara, associate vice-president for TD’s New to Canada, Everyday Advice Journey. “We recognize just how critical it is for new Canadians to build a credit history as they establish themselves and set the foundation for their future here.”
The impacts of limited access to credit extend beyond financial paperwork. Two-thirds (66%) of newcomers who have applied for credit expressed concern about their Canadian credit history, and one in five (22%) said they do not have enough access to credit to maintain a comfortable lifestyle.
Survey participants also reported that limited credit access has led to increased financial stress or anxiety (29%), restricted ability to take out loans (28%), higher interest rates (27%), difficulty securing housing (27%), and an inability to save or invest for future goals (24%).
One in three newcomers (34%) said that having better access to financial advisors who understand their unique needs would help them build or improve their credit history.
The survey included 265 randomly selected Canadian adults who have lived in the country for up to five years. It has an estimated margin of error of ±6.0%, 19 times out of 20.
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