Firm enables lenders to assess newcomers' foreign credit histories
Equifax Canada now allows immigrants to use credit data from their countries of origin with the launch of a new tool enabling Canadian lenders to assess creditworthiness based on newcomers’ international credit histories.
The company has rolled out the Global Consumer Credit File, which is designed to help lenders make more informed lending decisions by providing them with access to foreign credit data. It connects international credit bureaus to deliver what Equifax called a “calibrated score”, allowing lenders to consider newcomers’ global credit backgrounds.
The system is currently operational with credit information from India, with upcoming expansions planned for Brazil, Argentina, and Chile. Equifax’s long-term roadmap includes data integration from a total of 18 countries, progressively broadening access to the Global Consumer Credit File for newcomers from diverse backgrounds.
As Canada prepares to welcome an estimated 500,000 new immigrants annually by 2025, Equifax noted that many of these newcomers arrive with established credit histories that Canadian financial institutions currently cannot access.
Without a local credit history, newcomers often face a "thin credit file", generally defined as having two or fewer credit lines, which can make it challenging to access credit products or secure housing renting apartments, or access credit products at competitive rates.
The Global Consumer Credit File aims to address these gaps by linking credit information from Equifax bureaus worldwide, allowing Canadian lenders to view a calibrated score based on international credit data.
Read more: Adjusted immigration targets aim to relieve housing pressures
“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,” Equifax Canada CEO Sue Hutchison said in a Press release. “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.”
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