Newcomers to Canada

Are you a newcomer starting your life in Canada? Welcome to the country! There’s a lot to do, and no doubt you’ve already got many questions on your mind. Over the past few years, inflation has significantly impacted our purchasing power, and there are many ways of dealing with it.

That’s where Milesopedia comes in. As Quebec’s leading reference site, milesopedia.com is your ally in navigating this complex universe. We can help you understand and use Canada’s loyalty program and credit card system to save money on everyday expenses and travel planning!

Whether you’re a permanent resident, a Canadian citizen, a refugee, an international student or a temporary worker, navigating the Canadian financial system may seem complex at first, but it’s crucial to your integration and success in this country.

However, by following a clear set of steps, you can establish a solid foundation for your financial health in your new country. Here’s where to start:

In many cases, a financial institution will offer you a credit card in addition to a debit card.

A credit card allows you to borrow money from the bank, which is usually repaid at the end of the month. Interest charges are billed and are calculated according to the card’s annual interest rate (APR), the outstanding balance and how the balance is carried from month to month.

Here are a few guides if you’re just starting out with debit and credit cards:

A credit card is crucial to start building your credit history in Canada. Look for cards designed for newcomers that don’t require a Canadian credit history.

As a newcomer, we recommend you adopt these two habits:

• Pay the full balance each month to avoid interest charges on your purchases.
• Make frequent payments to reduce the average daily balance.

Why? Your behaviour is recorded in a detailed report on your credit history or credit file by credit bureaus: Equifax or TransUnion in Canada assigns you a number, called a “credit score.” Financial institutions then use this score to identify your creditworthiness, assessing the risk of lending you money or granting you credit.

Want to take out a loan to buy a car, apartment or house? Your credit score will be essential to your future financial endeavours, such as obtaining a mortgage or car loan.

To find out more about credit scores, see our complete reports:

A wide range of options to suit different financial needs and lifestyles are available to Canadians. The credit card market is very dynamic. New products are introduced regularly, while less popular offers are withdrawn. There are over 200 credit cards on the market, and with everyone having different needs, it can be hard to find your way around: it’s our mission to guide you through these options.

Milesopedia analyzes the credit card offers of Canada’s leading financial institutions on a daily basis to produce monthly rankings and annual rankings based on over 18,000 data points, such as annual fees, welcome offers and insurance. This exercise establishes 32 categories, making it easier for consumers to identify with a specific profile and objective. We have set up a points valuation system to help you calculate the return on your points.

Finally, Milesopedia offers an easy-to-use credit card comparator, listing the vast majority of financial products available on the Canadian market. Answer the five questions and use the search filters to find your next credit card!

Still, have questions about choosing your next credit card? See our guides:

You may wonder how loyalty or reward programs can help you integrate into Canada.

Loyalty programs in Canada play a crucial role in the customer retention strategy of many companies, offering consumers a variety of benefits and rewards to encourage brand loyalty and repeat purchases. These programs cover a wide range of sectors, including travel, retail, financial services and more.

It’s essential to have the right strategy in place before signing up for a credit card. Consider the rewards you could earn: would you prefer travel points to save on hotel stays, airline tickets or cash back?

If you have any doubts about the benefits of reward points, look at the many testimonials we’ve gathered from our community!

Here’s an overview of Canada’s current state of loyalty programs, including trends, challenges and opportunities.

Why sign up for loyalty programs in Canada?

When we think of loyalty programs, we think of collecting personal information on consumers’ purchasing habits, personal preferences, contact information and sometimes even online behaviour.

Companies use these programs to personalize their offers and improve the customer experience. While this can offer significant benefits for both businesses and consumers, it also raises a number of issues relating to privacy and the security of personal data.

The main loyalty programs in Canada

• AeroplanAeroplan Miles: Focused on travel, earn Aeroplan Miles and use them for travel, upgrades and exclusive benefits with Aeroplan partners such as Air Canada.
• AIR MILES: collect AIR MILES miles on everyday purchases at numerous retailers and redeem them for travel, products or experiences.
• Marriott Bonvoy Earn Marriott Bonvoy points, redeemable for stays, hotel nights, upgrades and more at over 8,000 Marriott Bonvoy hotels worldwide.
• American Express Membership Rewards Earn points and redeem them for exclusive rewards.
• Scene+ programScene+: entertainment-oriented, earn points for movie tickets at Cineplex, discounts at restaurants and grocery stores, and travel.

Using and sharing data

Consumers may not be fully aware of the extent to which their data will be used, particularly if it is shared with partners, advertisers, or other entities outside the original loyalty program. This may result in data being used for targeted marketing or other practices that may be perceived as intrusive.

Data security

With the vast amount of personal information stored, loyalty programs can become attractive targets for cyber attacks. Data breaches can expose consumers’ personal information, leading to risks of fraud and identity theft.

Consent and transparency

Questions of consent and transparency are crucial. Are consumers fully informed and do they understand what they are agreeing to when they sign up for a loyalty program? Privacy policies and consent practices must be clear and easily accessible, but this is not always the case.

Finally, with the new Bill 25 on the management of personal information in Quebec recently implemented (September 2023) and inspired by European law (RGPD), citizens have more protections and companies have obligations to fulfill. Companies must adopt responsible data management practices, such as :

• Data minimization: only collect data that is strictly necessary.
• Transparency: clearly informing consumers about data collection, use and sharing.
• Enhanced security: implement advanced security measures to protect data against unauthorized access and breaches.
• Informed consent: ensure that consent is obtained in an informed manner and can be revoked at any time.
• Privacy by default: design loyalty programs that respect the confidentiality of personal data from the outset.

Find out which loyalty programs exist and which ones you should sign up for with Milesopedia, as well as all our related articles every week!

Despite these laws and protections in place for Canadian consumers, no one is immune to fraud or identity theft. As a newcomer, it’s not always easy to know who to trust.

Always be cautious when you receive a call from an agent asking for financial information. The institution may ask for your surname, first name, date of birth and address to identify you, but never your Social Insurance Number (SIN), for example. A fraudster may try to gain your trust by giving you collected information or by calling you with a number impersonating the institution’s (spoofing).

If in doubt, hang up and call the financial department yourself. Fraudsters use a variety of methods:

1. The tax scam

Fraudsters pose as agents of the Canada Revenue Agency (CRA) or another tax authority, claiming that you owe money for unpaid taxes. They often threaten serious consequences, such as arrest or prosecution, if you don’t pay immediately, usually by bank transfer, gift cards, or other untraceable means.

2. The technical support scam

In this scam, fraudsters pretend to be associated with a major technology company (such as Microsoft, Apple, or an antivirus provider) and claim that your computer is infected with a virus or compromised in some other way. They offer to fix it for a fee, or try to get you to give them remote access to your computer, which can lead to the theft of personal information or the installation of malware.

3. Calls concerning bank account or credit card problems

Scammers call pretending to be your bank or credit card company, reporting a problem with your account, such as a suspicious transaction. They try to scare you into confirming personal information or account details, which they then use to commit fraud.

4. Public health scams

With the COVID-19 pandemic, health-related scams have emerged, where crooks pose as public health officials, offering screening tests, vaccines, or treatments in return for payment or personal information.

5. False lotteries or prize offers

Victims receive calls informing them that they have won a lottery or prize (which they never entered) but must pay fees or taxes to claim their winnings.

6. SMS scams (Smishing)

These SMS messages may appear to come from legitimate organizations, such as banks, government agencies or well-known companies, and attempt to trick you into divulging personal or financial information or clicking on malicious links.

Consult our articles on fraud to stay alert and pass on these security measures to your friends and family:

We hope you now feel better equipped to manage your money effectively and make informed decisions! Follow us on our various social networks to find out how you can save money with Reward Points!