Some of us are just Ignorant of the importance of credit, especially living in North America

BY SIMONE J. SMITH

Do you know what your credit score is? How good is your credit? Do you know what having “good” credit means? How much about credit do you know?

I know, real personal questions, and ones that are often ignored, or pushed to the back of our minds so that we don’t have to think about it. Some of us are just ignorant of the importance of credit, especially living in North America.

Building credit effectively is a crucial financial skill, but unfortunately in the African Caribbean community, not everyone is aware of the best strategies to do so. Many people might not fully understand the importance of good credit or how to go about establishing and maintaining it. People need to understand what credit is, how it works, and why it’s important. This includes knowing how credit scores are calculated, what factors influence credit scores, and how lenders use this information to make decisions.

Educational programs, financial counseling services, and online resources can all play a role in helping you understand how to effectively build and manage your credit. By taking the time to educate yourself and make responsible financial choices, you can improve your creditworthiness over time.

On November 1^st, 2023, Credit Canada launched a free, multilingual online learning program about credit, developed specifically for newcomers to Canada. Although it is tailored for newcomers, I thought that this would be helpful for individuals who are, let’s say, (clear my throat), credit challenged.

Each November, Credit Canada joins the Financial Consumer Agency of Canada (FCAC) to engage with Canadians during Financial Literacy Month. For 2023, Credit Canada set out to develop a program that would provide value to the newcomers in the Canadian population and will live well beyond Financial Literacy Month.

Finding employment and a home to rent are just some of the first obstacles newcomers have to overcome, all while adjusting to a different culture, building a new community, and perhaps learning a new language. While there are many resources to support newcomers when they arrive, Credit Canada identified a gap in helping newcomers build their new life – education about credit that reflects a newcomer’s experience, presented in their preferred language. This new program will help fill that gap.

Bruce Sellery, the CEO of Credit Canada, has been working with other nonprofits, government agencies and private sector organizations to identify the key issues newcomers face in the Canadian financial landscape.

“As a non-profit credit counselling agency, we speak to Canadians every day who are looking for solutions to manage their credit and pay down their debt. When you layer in the complex and persistent challenges newcomers face when accessing credit, such as language barriers and limited credit history, it can become much more difficult to establish that financial foundation. There aren’t many resources customized for them specifically, both in terms of content and language, which is why we wanted to create something easily accessible and available in several languages.”

Himank Bhatia is a certified credit counsellor and spokesperson for Credit Canada. “The newcomer population in Canada is significant, with each person facing their own unique circumstances. When I arrived in Canada six years ago, I was lucky to find the support and advice of individuals who understood the unique challenges newcomers face. I am inspired to pay it forward by aiding others on a similar journey and reminding newcomers that they, too, possess the power to flourish and succeed in Canada.”

The Details:

• Program: Building Credit From the Ground Up: A Program for Newcomers to Canada.
• Languages: English, French, Arabic, Farsi, Hindi, Spanish, Simplified Chinese, and Tagalog
• Format: E-learning on any device. Each module takes 10-15 minutes to complete and includes short case studies, mini-quizzes and other interactive elements

Topics:

• Essentials of credit in Canada
• How to build your credit history in Canada
• How to improve your credit score
• What to do if you run into problems with credit

Credit Canada has partnered with online influencers and several community organizations throughout November to help connect with various newcomer communities. The response has been positive, with many organizations jumping on board, including Achēv, a leading charitable organization that delivers employment, newcomer, language, youth, women and inclusion services in the Greater Toronto Area.

This program is FREE thanks to the support of our sponsors, including Indeed Canada, Easyfinancial, and the Canadian Bankers Association. You can access the modules: www.creditcanada.com/newcomers