Understand your credit report
There are 2 credit reporting companies in Canada – Equifax & Transunion
Equifax https://www.consumer.equifax.ca
Transunion https://www.transunion.ca
Whenever a person opens any sort of account with a bank or a line of credit, any activity on the accounts gets reported. Lenders go to these companies to see how big of a risk a person is before deciding to extend credit.
A credit score is a three-digit number given based on one’s credit report - the higher the score, the less of a risk one is considered to be.
In Canada, credit scores range from 300 to 900 points.
Check your credit report regularly
Check and monitor your credit report regularly and get errors (if any) corrected. You can ask for a free copy of your credit file by mail. There are two national credit bureaus in Canada: Equifax Canada and TransUnion Canada. You should check with both bureaus. ... If you can't wait for a free report by mail, you can always get an instant credit report online
Open a Bank Account & apply for a Credit Card
Go to a bank branch and open a bank account. They’ll assess your situation and advise an appropriate bank account accordingly. Ask for an unsecured credit card with your bank account. Most of the Canadian bank will offer a credit card with a checking or savings account.
A Mastercard for everyone
Apply online:
Apply for Secured Credit Card
A secured credit card is secured against the cash deposited. These cards are offered to those with no credit or with bad credit to help them establish a credit history. It is easier to get due to the low risk to the bank. Any activity on a secured card is reported the same as it would be with an unsecured card, so it will affect your credit. If you handle a secured card responsibly, you can eventually become eligible for an unsecured card.
Build Rental History
If renting – your rental history can be very useful in building a credit history. Always pay your rent on time and thru bank account.
Get a Post Paid Plan
It’s better to apply for a post-paid mobile connection as it will help you build up credit history. Some carriers don’t need a credit history to open an account and will report your subscription to the credit bureaus.
Pay off full balance each month
While carrying a balance and making your payments on time will help your credit history more than paying in full each month, we would never recommend carrying a balance just to build your score. Using your credit card and paying it off every month will help build your credit score as well, just not as fast. But it’s a better strategy than paying excessive interest charges just to build a credit history.
Pay all bills on time
Pay your 100% bills (utilities, phone or mobile) on time and avoid any late payments or collection accounts in your report.
If in any case you are seriously behind on your payment - the service provider can send your account to collection which can affect your credit score adversely.
Don’t apply for too many credit cards
Every time you apply for a credit card, your credit score will take a slight hit because of the inquiry. When you’re in school, stick to one card and avoid the booths and kiosks that are offering incentives for you to take their credit card. Do your research before applying for any credit product, as you could be agreeing to something that has hidden fees and payments attached to it.
A good and strong credit is important for everyone. Loans are a necessary part of life for most of us. Building a good credit history and with a high credit score can have an impact on your quality of life now and in the future when you need to apply for a loan or any line of credit.
Get Pre-Qualified in minutes for free: http://bit.ly/mortgageprequalification
Comentários