Nick Noorani Website

For Immigrants in Canada:
1) How do you develop a good credit rating when you can’t get credit?
2) How do you get a driver’s license?
3) What is Employment Insurance?
For Potential Immigrants to Canada:
1) What is welfare?
2) What kinds of hours will I be expected to work?
3) What’s a SIN card… it sounds bad?

For Immigrants in Canada:
1) How do you develop a good credit rating when you can’t get credit (2 min answer)?
In the case of a new immigrant, your history of debt repayment in your native country has no relevance here. You are creating a new credit history.. Holding a credit card means you have established good credit and pay your bills on time. Credit counselors advice that debt payments, such as car or school loans and credit card payments (not including a home mortgage), should not total more than 20 per cent of a person’s net monthly income.
The first step is to open a savings and chequing account at your local bank or credit union. The very existence of such accounts provides lending institutions with evidence that you have money and are establishing some roots.
The secured credit card is the easiest way to start a credit history. If you have a large enough sum of money, the bank will hold that in a fixed deposit and give you a credit card against that amount. For example, I was asked to deposit $3,000 in return for the bank granting me a major credit card with a limit of $1,000. After some negotiation, the bank was convinced to accept a $2,000 deposit and grant me a $1,000 credit card limit. A friend of mine did just that and in three months he had his credit limit raised to $5,000 and got another three credit cards simultaneously. This is referred to as a secured credit card, which really reduces the lenders’ risks to nothing as the cardholder has enough money on deposit as security against default. This card can help to begin building your credit in Canada. It is important to find out if the bank or financial institute is reporting the balance or monthly transactions to the credit agency. If they are, then you are building credit history. There are some companies giving secured credit cards who do not report the balance to the credit agencies.
Another common and relatively easy route to establishing credit is to obtain a credit card at one or more of the major national department stores such as the Bay, Sears, or Canadian Tire. Most major stores carry credit card application forms and can process the applications while you wait.
At least you know immediately whether you’re approved or not. If approved, you will likely be granted a small credit limit, say $1,000, but it is a very important step. Use the card carefully and, remember, any unusually high purchases will show up on your credit rating. Also do remember that most of these store cards charge a higher interest rate – so one way or the other, you are paying to get a credit history.
In a short while, you can use that card to obtain many more cards. Even if you have the cash to pay for a purchase, you can begin to build your credit reputation by charging the item. In most cases you will not incur finance charges if you pay the entire balance by the due date on your statement. Most statements are sent out once per month, and they usually give the credit card holder two to four weeks to pay at least the minimum payment, before interest starts to accrue on that sum. So the credit card process actually allows you to use the credit card company’s money for up to a month or so without incurring any interest.
Get Your Spouse an Independent Credit Card! I was delighted when my wife got a Visa credit card through her employer that came with a spousal card for me. We had also accumulated a few department store cards where I was also listed as a spouse. I assumed I was building up a good line of credit until I discovered the cards provided me with no credit history at all. This was despite having a leased car in my name and paying my lease payments for many months on time. So the moral to this story is both you and your spouse need
When a potential lender reviews your credit application, it is basically trying to gauge the likelihood that you can — and will — repay the money it lends you.
If you find an error in your credit report, be sure to contact both credit bureaus to correct the error. A friend who had applied for a mortgage was refused as his record inaccurately showed he had a large outstanding credit card debt. He had cleared it before applying for the mortgage, but it had not been reported to the bureau. I had leased a car and my report did not show my payments. A quick call to the leasing company showed they had forgotten to report the lease. Once this was done, my report changed dramatically.
2) How do you get a driver’s license? (2 minutes)
It is a good idea to get an international driver’s licence as well before you leave your home country. Your foreign driver’s licence may be valid for only three to six months.
Sooner or later, however, you will need to take a driving test to obtain a Canadian driver’s licence. Because it displays your photograph, signature and address, a driver’s licence also serves as one of the best pieces of identification you can carry.
Licences are issued by the province or territory in which you live.
In order to receive a licence, you must pass a test, which consists of both a written examination and a road test. In order to pass this test, you need to learn the rules of the road in your province. In some provinces, a minimum 30 days is required between writing the knowledge test and taking a road test.
Pamphlets explaining the rules in each province are available from
the provincial motor vehicle branch. Inspite of driving for 24 years, I flunked the knowledge test and barely passed the road test! Study for your test and take lessons, it makes the process easier!
You must be at least 16 years old before you can be tested for a driver’s licence. Some provinces have implemented a graduated licensing system whereby young drivers can be restricted to driving only in daylight hours during their probation period.
You may need to have the following documents to apply for a driving license:
•Passport;
•PR Card
•Proof of address (Bank statement / some other public office received mail, etc.);
•Driving license from your home country — It is better to carry an International driving license from your home country.
3) What is Employment Insurance? (1 minute)
EMPLOYMENT INSURANCE (EI) is a federal program that basically ensures that a worker who loses his or her job, through no fault of his or her own, is paid a percentage of his or her wages for a period of time until another job is found. Claimants must be continually looking for a job or upgrading skills by attending courses while collecting EI.
Employees and employers jointly pay the funding to provide employment insurance, with employers paying a little more.
In order to claim EI, you must have worked for the required number of insurable hours (generally between 420 and 700 hours) in the last 52 weeks or since your last EI claim. The number of weeks of employment required varies from region to region, depending on the unemployment rates in those regions. Those entering the work force for the first time will need a minimum of 910 hours of insured employment, as will those who have been absent from the work force for two years or more.
Qualifying claimants will receive benefits until they find a job, or for a maximum of 45 weeks of benefits (within a duration period of 52 weeks), whichever comes first. They will be required to complete and submit a form attesting to their earnings every week. In some cases, they may also be required to provide proof that they are seeking employment.
As an EI claimant, you must complete and submit to your local office record of your employment or lack of employment every week while you collect benefits and you must tell the office when you obtain full-time employment. Everything you earn from employment must be recorded on that form. You may also be asked to provide a list of jobs you have applied for. You must be available for work at all times while you collect EI.
For Immigrants outside Canada:
1) What is welfare? (2 minutes)
Social assistance, income assistance or welfare is a serious, last-resort safety net to provide the basic necessities of life to those who cannot do so. While most applicants should view the program as a temporary bridge, for some applicants it may be a long-term requirement.
Administered provincially, income assistance programs are designed somewhat differently in every province, with different criteria established for eligibility. In some instances, income assistance is considered long-term and unavoidable, such as in the cases of disabled persons or seniors.
Programs operate under a variety of departments and names, such as in
Ontario, it is known as Ontario Works. In B.C. it falls under the Ministry of Employment and Income Assistance. In Alberta, it is called Income Support under Alberta Human Resources and Employment ministry.
The following are fairly standard components of all income assistance programs in Canada:
 Recipients should regard income assistance as a last resort when all other avenues of assistance have failed.
 Recipients should be prepared to seek assistance from relatives prior to seeking social assistance.
 Recipients should be prepared to divulge every source of income, including salary, child benefits, Workers Compensation benefits, pensions, disability pensions, etc.
 Recipients should be prepared to report all sources of extraordinary income, such an inheritance, or the sale of an automobile or any other possession.
 Recipients should be prepared to work, look for work, or enlist in a job-training program or education upgrading to prepare them for moving off welfare as soon as possible.
 Recipients should be prepared to report to a social worker or Financial Assistance Worker (FAW) at regular intervals or when requested to do so by an income assistance representative.
 Recipients should be prepared to produce a range of documents supporting their request for assistance, including Social Insurance Number; driver’s licence, passport, citizenship papers, Medicare card, and recent rent and utility receipts.
In an effort to reduce welfare fraud, provinces frequently prosecute recipients who fail to divulge accurate information about their income or assets.
2) What kinds of hours will I be expected to work?
Canadian laws try to ensure fair and equitable treatment and compensation for workers. Every province has employment standards that govern work hours, overtime pay, holidays, minimum wage and termination of employment.
Fairly standard work guidelines across Canada have established that the average workweek is 37 to 40 hours and that staff is entitled to at least one half-hour eating break for every five consecutive hours worked. Employees who are asked to work longer hours per day are to be paid overtime.
Every province has also established a set of regulations governing farm workers, domestic help, live-in help, commission sales, student employment and much more. For information on any of these specific areas, check out the Employment Standards Branch or Ministry of Labour in your province.
3) What’s a SIN card… it sounds bad?
Applying for your Social Insurance Number (SIN) should be one of your first steps. Without it, you cannot get a job or apply for any government assistance or credit. In fact, without one, you are virtually a person without an identity in Canada.
One of the first things your new employer will ask you for is your SIN number. Although you will eventually receive a wallet-sized card with this number on it, it is a good idea to memorize it as you will use it frequently.
Every tax dollar you pay, every pension plan you contribute to and every employment insurance premium you pay is tracked through your SIN number. It is also one of the most vital forms of identification used throughout the country.
Applications for a SIN card can be made through a Human Resources and Skills Development Canada (HRSDC) office. You will need to show your original Record of Landing (IMM 1000), as well as identification such as a passport, and any documents showing a change of name, such as a marriage certificate, divorce papers or adoption papers. While you can make an application for a SIN card by mail, HRSDC prefers that you visit one of its offices in person with all your identification in hand.
For the address of the HRSDC office nearest you, check the blue pages of your local telephone book under Government of Canada, Human Resources and Skills Development Canada.