Equifax Inc. is launching a program called the Global Consumer Credit File that will allow newcomers to Canada to transfer their foreign credit history, making it easier for them to access services like loans and cellphone plans. This program is crucial for immigrants who need credit history to rent apartments, get mobile phones, and apply for credit cards. Equifax is not the first company to offer such a program in Canada, as San Francisco-based Nova Credit already provides global credit score access in partnership with Scotiabank, RBC, BMO, and Rogers Communications Inc. Equifax’s program will initially provide data from India, with plans to expand to Brazil, Argentina, and Chile in the future, and eventually include data from 18 countries in total.
Nova Credit partners with multiple credit bureaus, including Equifax, to gather data from over 20 countries. As Equifax enters the competition, discussions are underway regarding data access moving forward. Equifax has operations or investments in 24 countries, giving them the advantage of being a direct provider of data from their foreign bureaus. They plan to use data from their own operations as well as source from other bureaus to provide lenders with a Canadian score, a global score, and a blend of both. This approach is necessary because different countries have varying methods of creating credit scores. The program launch coincides with Canada’s recent increase in immigration, and Equifax’s transition to a cloud-based platform makes it easier to securely share data.
The importance of allowing newcomers to transfer their foreign credit history to Canada lies in the fact that they need credit history to access essential services. Without credit history, immigrants face challenges in obtaining necessities like housing, phones, and credit cards. Nova Credit, in partnership with various Canadian institutions, has been providing global credit score access to immigrants in the country for a few years. Equifax’s new program, the Global Consumer Credit File, aims to further facilitate this process by directly providing data from their foreign bureaus. Initially launching with data from India, Equifax plans to expand to include information from other countries in the future.
Equifax’s entry into the market of transferring foreign credit history to Canada adds to the existing options available to newcomers. With their direct access to data from their global operations, Equifax aims to provide lenders with a more comprehensive picture of an immigrant’s creditworthiness. The program is designed to offer lenders a blend of Canadian and global credit scores to help them make informed decisions. As immigration to Canada continues to rise, services that facilitate the integration of newcomers, such as Equifax’s program, play a vital role. The secure and efficient sharing of data through Equifax’s cloud-based platform ensures that the process is streamlined and accessible to those who need it.
In conclusion, Equifax’s new program, the Global Consumer Credit File, addresses the critical need for newcomers to Canada to transfer their foreign credit history. By providing data from various countries and offering a blend of Canadian and global credit scores, Equifax aims to make it easier for immigrants to access essential services. The collaboration with Nova Credit and other credit bureaus demonstrates a commitment to supporting immigrants in establishing their creditworthiness in their new country. As Canada experiences a growth in immigration, programs like this become increasingly important in ensuring that newcomers can seamlessly integrate into the financial system and access the services they need. The secure sharing of data through Equifax’s cloud-based platform ensures that the process is efficient and reliable for all parties involved.
