New Equifax feature lets newcomers use foreign credit history in Canada
On Thursday, Equifax Canada launched the Global Consumer Credit File, a solution to make Canadian newcomers’ lives easier and help lenders make more confident credit lending decisions.
A good credit history is essential for many things in Canada, like getting a mortgage or loan, insurance, credit cards, and sometimes even renting. It shows your ability to pay off debts.
Building a credit history from scratch can be a complicated and lengthy process for newcomers in Canada.
“The solution creates a calibrated credit score using newcomers’ credit histories from their countries of origin. The platform offers lenders and newcomers to Canada a seamless and secure means to access global credit data, which is essential in obtaining services such as housing, credit cards, and mobile phone contracts,” reads a release from the consumer credit reporting agency.
By reducing barriers to financial access, the Global Consumer Credit File can help newcomers to Canada realize their full potential from the moment they arrive, along with those already in Canada, ensuring that they can thrive both financially & personally https://t.co/em7HoRew5x pic.twitter.com/RqZ1voJxs8
— Equifax Canada (@equifaxcanada) October 24, 2024
On October 24, Prime Minister Justin Trudeau announced that Canada is dramatically slashing immigration targets. Though immigration is about to become slower, many residency applications are still in process, and thousands of newcomers are just starting out in the True North.
Equifax noted that newcomers in Canada often have a thin credit file (generally defined as having two or fewer credit lines) with little to no credit history because their credit file from their country of origin may not carry over to Canada.
“Without a more robust credit file, newcomers may face greater challenges in navigating the Canadian financial economy. Having a credit score allows newcomers to Canada to gain access to greater financial opportunities,” the agency shared.
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The Global Consumer Credit File will seamlessly and securely allow new Canadians to leverage their global credit profiles when they apply for the credit necessary to build their financial lives in Canada.
The solution will launch with credit information from India. Plans to expand the service for newcomers from Brazil, Argentina, and Chile over the coming months and a future roadmap that includes 18 countries total are in place.
Lenders can use trusted information to make decisions for these newcomers.
“At Equifax Canada, we are committed to supporting the Canadian financial ecosystem to help provide more inclusive financial opportunities that move people forward,” said Sue Hutchison, president and CEO of Equifax Canada.
“Newcomers to Canada bring a wealth of talent and ambition to this country, and we are proud to play a role in helping them gain access to the credit they need to thrive. The Global Consumer Credit File allows us to empower these individuals from day one, helping them establish their financial roots and contribute to Canada’s vibrant economy.”