If you have relocated to a new country, you will have to start building your credit from scratch. Here is what you need to know to make that happen.
Build Credit in Canada
So does one start to re-build credit here? Well you have to start with building your worth and trust with accounts of smaller value. As lenders see that you are time bound and always stay within your limits, credit can be granted.
If you are young and new to the country, here are some interesting tips that can help you build credit in Canada:
• Keep an eye on credit scores. Understand how they work. Credit scores are 3 digit numbers which are given on the basis of how payments are being made to the lending bank. The better you score, more risk prone you are considered to be.
• Get yourself to open an account. To prove your worth to any financial institution is to make an account in one of their branches. Make sure your cheques do not bounce and that you build your relationship with them.
• Try to open an account with high savings. As long as you present yourself to the bank as someone who can keep money and save it, you will be trusted with credit cards too.
• Take to an overdraft. Take loan of a small amount and don’t use it a lot but this shows you can be trusted with larger sums and of course credit lines.
• Sign up for a credit card with department store account. Many big names in the retail sector have easy to get credit cards.
• Get yourself a secured credit card. This will help re-establish your credit even if you have bad history. The credit limit depends on how much money you will or can actually pay up. These are easy to get and are deemed less risky. But yes, you do have to pay your bills on time to continue your credit run.
• Do take the offers that banks make for credit. If your lender is making promotions for credit lines, then go for it. You need to make the most of every opportunity to make sure they understand how trustworthy you really are.
• If you have been handed credit, use it judiciously and handle it with your head. This was you will be able to build credit in Canada.