Do you need a credit history to open a bank account?

One of the most common misconceptions among newcomers to Canada is that you cannot open a bank account without a credit history. In fact, a credit history is not a requirement for opening a standard checking or savings account. Banks look at other aspects of your financial behavior and have a legal obligation to provide access to basic banking services even to individuals without any credit history in Canada.

Key difference: banking history vs. credit history

What banks check when opening an account

When you apply to open an account, the bank does not check your credit history through Equifax or TransUnion. Instead, a different risk assessment system is used that focuses on your previous banking behavior rather than your ability to repay borrowed funds.

Banks may consult specialized agencies that keep records of banking activities. In the US, this is ChexSystems, but in Canada, such systems are less centralized and focus on specific cases of fraud or abuse of banking services.

Why you don't need a credit history

A checking or savings account is a deposit product where you keep your own money. Your credit history shows how responsibly you handle borrowed money, which is not directly related to how you manage your own savings.

Legal basis: Under sections 627.17-627.19 of the Bank Act, Canadian banks are required to provide access to basic banking services to all individuals who meet minimum identification requirements. These provisions do not refer to the need for a credit history.

Federal guarantees of access to banking services

Low-Cost and No-Cost Account Program

Starting December 1, 2025, all federally regulated financial institutions are required to offer basic accounts for a maximum price of $4 CAD per month. These include:

  • A minimum of 12 debit transactions per month
  • Ability to write checks
  • Free deposits
  • Debit card
  • Monthly statements
  • Preauthorized payments

Special categories receive these accounts free of charge: youth, students, GIS recipients, RDSP beneficiaries.

What to do if you are denied

If a bank denies you an account, they are required to provide a written explanation. Legitimate reasons for denial include:

  • Inability to verify your identity
  • Suspicion of fraud or illegal activity
  • Intentional provision of false information
  • Threats or abusive behavior toward staff

Lack of credit history cannot be a reason for refusal.

Special programs for newcomers

Big Five banks

  • RBC Newcomer Advantage — “no credit history required” for credit cards up to $15,000; no credit history required for accounts.
  • TD New to Canada — credit cards up to $15,000 even with no credit history; accounts are opened regardless of credit history.
  • Scotiabank StartRight — optional transfer of foreign credit history through Nova Credit.

Regional banks in Alberta

  • ATB Financial — “no credit history required” for accounts and loans.
  • Servus Credit Union — maximum flexibility in accepting customers with no credit history.

Online banks

  • Simplii Financial — accounts with no credit checks; credit cards up to $10,000 with no Canadian credit history.
  • Tangerine — simplified identification, focus on current income.
  • KOHO — designed for customers with no or poor credit history.

When credit history can be a factor

  • Premium packages with overdraft or credit lines may include a soft credit check.
  • Joint accounts — credit history of both account holders is checked.

Practical steps for those who are concerned

Divide and conquer strategy

  1. Open a basic checking account with no additional services.
  2. Add a savings account in 1-2 months.
  3. Consider credit products after establishing a relationship with the bank and obtaining a SIN.

Important documents

  • Canadian or foreign driver's license
  • Passport with a valid visa/permit
  • Proof of Canadian address
  • Contact information

Building credit history after opening an account

  • Regular use of the account and timely payments.
  • Secured Credit Card after 2-3 months as a start to your credit history.

International context

The Canadian system clearly separates deposit and credit products, which increases financial inclusion.

The FCAC monitors banks' compliance with access rules. Complaints about refusals can be filed officially with a guarantee of review.

Conclusion

A credit history is not required to open a bank account in Calgary or Canada in general. The law guarantees access to basic services to anyone who can prove their identity. A bank account is a starting point for building financial relationships in a new country, not an obstacle due to a lack of credit history.