Scotiabank partners with international credit history firm

Scotiabank has partnered with credit analytics company Nova Credit to let newcomers use their international credit history to apply for credit cards with higher limits in Canada, the bank announced Tuesday.

The program, Credit Passport, is for those who have been in Canada for less than five years and works with select countries. Scotiabank first partnered with Nova Credit in 2023 and says it is the first Canadian bank to embed this process directly into its online credit card application process.

The Credit Passport integration reduces the number of times newcomers need to visit a bank branch.

“We understand that building a new life in a new country comes with challenges,” said Kingsley Chak, senior vice-president of retail client value, deposits and investments at Scotiabank. “Scotiabank is helping remove some of those hurdles, empowering newcomers to begin their financial journey in Canada with confidence.”

Separately, a TD survey showed that 79% of newcomers who have spent five years or less in Canada and applied for credit said it’s difficult to start building a credit history in this country.

Over nine-tenths (92%) of respondents said they applied for credit cards, followed by car loans (18%) and mortgages (13%).

The newcomers surveyed said their lack of access to credit led to higher interest rates (27%), difficulty securing housing (27%) and the inability to save or invest for future goals (24%), among other concerns.

“With many new Canadians experiencing stress and anxiety, loan access restrictions or difficulty achieving their unique financial goals, the need for tailored solutions is evident,” said Muhammad Kara, associate vice-president of new to Canada and everyday advice journey at TD.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.