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

Keep Up To Date With Toronto's Real Estate Market
Every month we communicate with our readers to give them accurate insights and statistics about what's happening in the Toronto and GTA real estate markets.
Subscribe to our free monthly FYI Newsletter HERE.


Here are 5 proven ways to move safely and smartly towards your real estate buying goal...

  1. Download a free copy of my Ultimate Home Buyer’s Guide book
Find out everything you need to know about buying a Toronto house or condominium. Instead of randomly searching all over the internet, jump start your home buying experience and get a wealth of expertise and experience in one place.

Download your Guide here
  1. Get a custom listings search set up for you and receive targeted listings daily
If this list is not specific enough for you, we can put together a custom list of homes.  Maybe you want only 2-bedroom condos in specific neighbourhoods, or only semi-detached houses, or even a certain school zone. 
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed.  Just leave some search criteria here
  1. Set up a step-by-step plan with the best ways to get to your home buying goal
At the beginning of the home buying journey, often the picture of what the end result might look like is a little ‘fuzzy’.
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.

To arrange your no-obligation Starbucks Strategy Session, click here.
  1. Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
Start getting educated about what your condo likes and dislikes are. 
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
  1. Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Home buyers have come to us after trying to work with another agent saying “I don’t think he even knows exactly what I’m looking for and I’ve got questions he doesn’t have the answers to”.
Don’t make the same mistake.  Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.