How to Build a Credit History as an Expat Canadian

When a lender in America pulls an individual's credit history, he does so by using the individual's name and Social Security number. Canadian citizens are issued Social Insurance numbers rather than Social Security numbers. As a result, even though Canada uses the same credit bureaus as the U.S., American lenders are unable to pull a Canadian credit report. Canadian citizens living in the United States need to build an American credit history in order to be approved for mortgage or vehicle financing, credit cards and some forms of insurance.

Instructions

1

Check your visa status. Some forms of U.S. visas, such as the L1, grant visa holders a temporary Social Security number that is good for the life of the visa. A temporary Social Security number can be used to build credit.

2

Apply for an Adjustment of Status with the U.S. Citizenship and Immigration Services if you do not have a temporary Social Security number. An approved Adjustment of Status application will result in your being granted permanent residency in the U.S. You can apply on the basis of marriage, employment or the need for asylum. (See References 1.) The required filing fee varies depending on your age and current immigration status.

3

Wait to receive your employment authorization. Although applications for permanent residency can take up to one year to be approved, a work authorization and temporary Social Security card will be mailed to you approximately 90 days after your Adjustment of Status application is received.

4

Use your new Social Security number to apply for credit. Because you currently have no credit record, a secured credit card might be your best option to obtain a credit file. Secured credit cards require a cash deposit, but often do not conduct a credit check.

5

Make regular payments on your new credit card. The payment history on your account is responsible for 35 percent of your credit score, so missing even one payment could damage your new credit record.

6

Apply for a small loan after you have established a short, but positive, credit history. Even with a good credit score, you still might need a friend or family member to cosign with you due to the length of your credit history. Having one credit card account and one loan account will balance the types of debts you carry and increase your overall score.