How to Build a Good Credit Score as a Newcomer in Canada?
Without a doubt, immigrating to a new country offers fresh opportunities, however it also presents new challenges. No matter whether your change is temporary or permanent in Canada, you need to understand credit and incorporate it into your financial life. Thus, it’s crucial for newcomers to know how to build a strong credit history. In addition, whether you previously had a strong credit rating or none at all, you’ll likely need to start building it up again from scratch. The reason stands of this is credit records from your home country cannot be imported.
In order to help you establish your financial life in the Canada, you’ll learn how to use a variety of strategies and services to build and maintain good credit as an immigrant.
Start Applying For a Credit Card
To begin with the process, you need to start with a credit card application and approval step. Once you get it, you can make purchases with your credit card. Then, make sure that you pay your bills on time. Your credit history will begin to develop more quickly the earlier you open your first credit card.
Sign Up For a Cell Phone or Internet Plan
To open certain cell phone or internet plans, a credit check is necessary. Make careful to pay your payments on time once you’ve signed up for a cell phone or internet service plan. Additionally, not all wireless providers record your monthly payments to credit bureaus. If it is the case, you should inquire.
Types of Loan
A good credit history can be built by making on-time lease payments if you rent a car. The same would hold true for a mortgage, student loan, or any other type of loan – it’s all part of building a history of your timely repayment of debt.
Practice Budgeting
The key to raising your credit score is paying your payments on time. It doesn’t matter what kind of credit you have obtained from the aforementioned situations; if you want to improve your credit score, you need to learn and practice budgeting. Making ensuring your budget is appropriate is an important step to achieve this in a foreign country.
