Five ways to build your credit history and get good score
Having an established credit history with a good score is vital in Canada if you need a mortgage or loan for any big purchases. Also, the better credit score you get, the more money you will save, as you’ll get your loan at a better interest rate. Here are six strategies to help you build your credit.
Accept bank offers: Banks always want to promote their product, be it a line of credit or a credit card. Any such offer you receive either in person or by mail, accept it.
Own a mobile phone: Who doesn’t like the latest model of mobile phone these days? Some of the large service providers don’t even check your credit history to open your account and they will report your regular monthly bill payments to the credit bureaus, which in turn will help build your credit history.
Apply for a student loan: If you plan to take some post-secondary training, you may be able to apply for a student loan. These loans have to be paid back within a certain number of years and your payments will be reported to the credit bureaus.
Open a store credit card: open a department store or a furniture store credit card. They will have low credit limits and high interest rates, but they are comparatively easier to get than a regular credit card. Once you have available credit from these stores, use it wisely.
Apply for a car loan: Sometimes even without a credit card, you might be able to secure financing from a car dealer. The dealers will require a down payment and these kinds of loans can carry high interest rates. But having a car loan is a great way to build credit; your timely payments will be reported to the credit bureaus.
No matter which of these five strategies you employ, make sure you pay your bills on time, so you do not establish yourself as a late payer.
For more information on how to build excellent credit please call or email.
Rudy Lochan, Mortgage Broker