How To Get An Awesome New Credit Rating

By: Thomas Cook

How To Get An Awesome New Credit Rating

If you are thinking about buying a home and obtaining a mortgage, one of the first things to consider is your personal credit rating. Building a good credit history is important. If you have no reported credit history, it may take time to establish your first account.
 
This problem affects young people just beginning careers as well as older people who have never used credit. It also affects divorced or widowed spouses who shared credit accounts and were reported only in the other spouse’s name.
 
You may also have poor credit or a recent bankruptcy and need to restore your credit profile. Do not apply for a loan, or even think of obtaining a mortgage until you have firmly established or re-established your credit.
 
The fastest way to establish or re-establish your credit is with a Secured Credit Card.
 
Secured credit cards require a security deposit and typically the credit limit is set at the amount of your deposit. You can put down as little as $500 up to $5,000.
 
Your security deposit will earn interest while your card remains in good standing. If you cancel your card and pay off the balance, you will get back your security deposit and the interest accrued.
 
All credit cards, whether they are regular bank cards, department store cards, secured or unsecured credit cards are reported to your credit bureau and all activities are updated monthly.
 
A secured credit card will give you the opportunity to establish your credit on your personal credit report. Small private loans, or loans for used cars from your local used car dealer will not help re-establish your credit, because these types of loans are NOT reported to the credit bureaus.
 
Currently, most Canadian banks fall behind when it comes to providing help to establish or re-establish credit. Many individuals with poor credit history are declined when applying for major credit cards.
 
Some banks offer a secured credit card, but they may require up to three times the amount of deposit for security. This means that if you need $500 credit limit you would have to deposit as much as $1,500.
 
Benefits Of The Right Secured Credit Card
 
As well as helping to establish a good credit rating, the benefits of a secured card are many:
 

 
Thomas Cook
Thomas@LivingInToronto.com
647-962-1650
 


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