Even though this forum is for tax discussion, my question about credit is somehow related. Can anyone explain to me if Canadian banks and financial institutions base their credit evaluation on one's past credit history in the US and vice versa?
If you have BK in US, would this affect your credit in Canada especially when you're establishing it as a newly arrived landed immigrant? Any answer shall be appreciated.
US & Canada credit
Moderator: Mark T Serbinski CA CPA
If buy BK you mean Bankruptcy the answer is no it will not affect credit in Canada or vis versa.
However if you have never had credit in Canada it does not make it any easier getting credit since you can not go to the bank and ask them to Specifically look at your US credit history (even doing so some bank still will not look)
Generally credit checks are only done within the country that you are applying for the credit.
I went through this myself 5 years ago.
However if you have never had credit in Canada it does not make it any easier getting credit since you can not go to the bank and ask them to Specifically look at your US credit history (even doing so some bank still will not look)
Generally credit checks are only done within the country that you are applying for the credit.
I went through this myself 5 years ago.
Thanks for your reply. However, Canada and US are exchanging information including credit history because of trade agreement. Many Canadian banks and financial institutions have affiliations in the US. Many large Canadian companies are US based. In fact, if one has an international credit card issued in the US, Canadian creditors recognize this. This helps a lot when you buy a car or rent/buy home properties. As for BK, if you've one in the US and one of the creditors happens to have a branch in Canada like Capital One Bank, then you cannot transact business with this particular institution. If US credit history does not affect a landed immigrant, then this immigrant could just leave his debts behind in the US or file BK before landing in Canada. Your reply was good; but it's somewhat different from what I'm told. That's the reason why I'm asking the question in this group. Thanks anyway.
I’m only speaking from my personal experience.
Filing BK did not hinder me in getting credit in Canada. What hindered me was having NO credit. I was able to get a credit card through the Royal Bank, which also has affiliations in the US.
Your biggest problem will be not having any credit at all in Canada, you will have nothing for the bank to base there decision on.
As I said in my previous post having a BK does not make it any easier since you have NO credit in Canada and you don’t want them to look in the US. But it is possible I have done it.
It may take a cosigner with good credit in Canada to get you started, not because of the BK in the US but because you have NO credit in Canada.
Leaving your debts behind will harm your credit in Canada; collection agencies will come after you in Canada, by giving the collection to a Canadian collection agency which might show up on your Canadian credit report.
Filing BK did not hinder me in getting credit in Canada. What hindered me was having NO credit. I was able to get a credit card through the Royal Bank, which also has affiliations in the US.
Your biggest problem will be not having any credit at all in Canada, you will have nothing for the bank to base there decision on.
As I said in my previous post having a BK does not make it any easier since you have NO credit in Canada and you don’t want them to look in the US. But it is possible I have done it.
It may take a cosigner with good credit in Canada to get you started, not because of the BK in the US but because you have NO credit in Canada.
Leaving your debts behind will harm your credit in Canada; collection agencies will come after you in Canada, by giving the collection to a Canadian collection agency which might show up on your Canadian credit report.
You're indeed very helpful with your opinion. Allow me to add a few things: How could the US creditors give the debts to Canadian collection agency when they don't even know where the guy is. How would they know and how could they find you? I know that US company can always hire a Canadian lawyer to sue you in Canada; but that is, if they know you're in Canada.
There are several ways that they can find you. There is a paper trail for almost anything you do, It just depends on how much $$ you owe and weather it’s worth looking for you. But they will find you if it’s worth there time and $$.
I know when I had my US drivers license and I moved to Canada I had to forfeit it in the province of Ontario so that I could get a Ontario Drivers License, and I believe they mail these back to the State that issued you the drivers license.
You still have to file a US tax return every year if you’re a citizen, which asks where you live (unless you plan on lying on the tax return)
Trust me they will find you, it’s just a matter of time.
BTW - You have 6 months left to qualify for Chapter 7.
I know when I had my US drivers license and I moved to Canada I had to forfeit it in the province of Ontario so that I could get a Ontario Drivers License, and I believe they mail these back to the State that issued you the drivers license.
You still have to file a US tax return every year if you’re a citizen, which asks where you live (unless you plan on lying on the tax return)
Trust me they will find you, it’s just a matter of time.
BTW - You have 6 months left to qualify for Chapter 7.
So it does also happen in the US....weird...ridiculous! Canada and US have so many things in common. Why is this so? If you got good credit in either one country, this should have been considered.
Visa and Mastercard are used everywhere. If you keep your credit cards clean, then this reflects in the country you move to. This should be enough reference to approve a credit application.
Visa and Mastercard are used everywhere. If you keep your credit cards clean, then this reflects in the country you move to. This should be enough reference to approve a credit application.
Greg, I'm so impressed with your kindness and concern. Could we communicate in private? I may need further advice and help. Here's my e-mail: dan_cordova928@yahoo.com