New to Canada: Here’s How You Build Your Credit Score
Building a credit score is a difficult task.
It involved paying bills on time, having a good record with your bank, and more. However, a lot of times, when you move, your credit score in another location is not acknowledged at your new place.
Newcomers to Canada face and suffer from this. Whenever they need to apply for loans or mortgages, they may have trouble backing themselves up because their credit score has been reset. However, fret no more because we will help you in building your credit score again!
Purchase a Mobile Phone
A mobile phone is one of the most useful items you can get without having a credit score. However, it can also help you with building your credit score because your monthly plan bill will be reported to the credit bureau.
Just make sure to get a monthly plan to show consistent payments. And always try to be on top of your bill, regardless of how small it is. This will be a quick way to build your credit.
Set Your Budget
With a budget, you will not have unnecessary expenses. It will allow you to pay off what is important and necessary. It also makes planning your activities easier, knowing what you can and cannot spend.
This will also help you keep track of all your bills and payments. Credit scores use your payment history for all your bills as basis. The more up-to-date and on top you are of your bills and debts, the higher your credit score will most likely be.
Get a Credit Card
Charging things to your credit card and paying it off on time will be reported to the credit bureau. This will allow them to see that you are a responsible payer and will help build up your credit score. Just ensure that you can pay your dues on time every month.
The downside to this are the interest rates that may be higher. Try to apply for a credit card with lower interest rates, but in case it is not possible, higher interest rates would be fine too. Just make sure to keep up with all your payments.
Other Things You Can Do
As repeatedly mentioned above, just staying on top of your bills will be the most useful for your credit score. Additionally, you can take out more official loans and pay them off. However, like credit cards, the issue with this would be the interest rates.
Additionally, avoid being late on your bills or being out of budget while trying to raise your credit score. Going out of budget would make it more difficult for you to maintain your credit score. This is why you should always make sure that whenever you are taking out loans, you do not get carried away and just do so whenever you can manage to pay off these loans.
THE BOTTOM LINE
Building your credit score is tough, especially when you have to start from scratch in a new country. Don't worry; with our guide, you will be able to reach that high credit score in no time. Just always make sure that you are paying everything on time and that you are not putting yourself in a tight spot with many things to pay for.
If you are a first-time homebuyer in Canada, Level Up Mortgages will be glad to assist you. We have locations in Vancouver and Toronto, and we offer various mortgage services depending on your needs. See what you qualify for and contact Paul to get your pre-approval.
See what you qualify for or contact Paul to get your pre-approval.
Paul Davidescu (www.levelupmortgages.com)
Level Up Mortgages
604-809-3188
paul(at)levelupmortgages.com
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