5 tips to create your credit history in Canada

When you decide to live in Canada you need to have a good credit history if you plan to rent or buy a house, buy a car or even to borrow. When you start building your history it is important to keep your financial affairs in order, so that you can establish yourself in a solid way.

Here we share 5 steps to create your credit history:

  1. Open a checking and savings account at a local bank or credit union
  2. Acquire a cell phone through one of the local providers.
  3. Apply for a secured credit card. Although you start with a $ 500 limit you can always increase it later. It is important to pay some of your regular monthly bills (for example, your cell phone or cable bill) through this credit card so that you can begin to show consistent amortization behavior.
  4. Try to set a minimum credit limit of $ 2,000 with two credit cards or a loan and a credit card. Lenders and the credit bureau consider two years of active credit use as a good basis for creditworthiness.
  5. It is recommended that you review your own credit report annually or within six months before making any major purchase.