Are credit checks common in Canada?

Question

I want to move to Toronto after I finish my schooling. I'm 23 and a U.S. citizen. I have really bad credit due to some financial difficulties trying to pay for school and support myself, unfortunately. Is that something that would follow me should I wish to become a citizen there? Are credit checks as common in Canada (if present at all) like they are in the U.S.? It's not the sole reason I want to move. I've wanted to become a Canadian citizen for many years, and would be heartbroken if I couldn't just because of my financial past. Any input would be appreciated!

Answer 1

Do not listen to anyone who says that Canadian banks can pull U.S. credit reports or vice versa.  It's impossible.  The CRA databases cannot be legally accessed from one country to another.  I know this because my husband and I have struggled with it for months as our good credit has not followed us to this country.

Regardless, you will get a completely clean slate.  Use it wisely!

Answer 2

Once you are no longer a US Citizen, your debts are virtually erased as they have no legal right to try to collect on them.  your credit profile starts over, as canada has different credit bearu  

Answer 3

Although Equifax and Transunion are also used in Canada, the databases are independent so no the information is not transferable.

Even though the credit information is not going to follow you, you'll equally have lack of credit. What I suggest you do once in Toronto is apply for a secured credit card with Capital One just to get establish your new Canadian credit. Credit is bond in Canada, we don't have the loose reigns of the US.

Answer 4

Credit works the same way in Canada, and they share with the US two of our major credit bureaus.  Banks in Canada routinely check US credit references for their US customers, even those that reside in Canada.  Remember that there are plenty of Americans in Canada, and Canadian banks check US credit files because it is usually more convenient for a client than having to start building credit over.

Your best bet on starting over would be to start a whole new credit file in Canada.  I assume that you will soon be getting the Canadian equivalent of a Social Security Number.  Use this number to build a new credit file in Canada, and do not ever give a Canadian bank your SSN number.  This is not foolproof, but you have a decent chance at starting over.  Many banks may not want to extend credit to you until they check your US file, and once they do, your US SSN and the Canadian equivalent will forever be linked together, and so will your US and Canadian credit files.

Answer 5

The credit would not follow you into Canada. Once you became a legal  immigrant (ctizenship after three years) you will get Canadian Social Insurance Number (like ssn in US) and it will create new credit history. You also have to change your financial habits since you may again get into debt. There is free medicare so no more medical bills. In any case, you still will owe bills in US. Good luck.