3 Mistakes People Make When Building A Credit HistoryAug 28th, 2017
Establishing a credit history is one of the top priorities for all newcomers in Canada. A zero-credit history can be a huge roadblock for immigrants looking for the most basic of things like renting a house or buying a car. In their enthusiasm for building a credit history, they inevitably end up making a few mistakes. Some of them include:
Being over cautious with the credit card:
Credit cards are a good way to build credit. But they could tempt you into overspending. This makes people, especially new immigrants avoid using them altogether. Being overcautious can do more harm than good for newcomers. Treat your credit card as a debit card – use it wisely and always pay off as soon as the bill is due.
Having your finger in too many pies:
Credit building takes time and patience. It reflects well on your credit score when you can manage multiple accounts, but it can be a problem when you have too many credit sources. Start small with a single bank account and gradually move to an additional account as you become confident.
Applying for credit multiple times:
Re-applying does not make sense if you have not been approved for a loan. An inquiry is added to your credit score every time you make an application. Too many inquiries affect your credit score negatively. Besides, lenders would be curious to know the reasons why you are being denied credit.
A sure and safe way to build credit is to apply for a zero/bad credit auto loan through dealers specializing in no/bad credit auto loans. Visit us if you would like to know more about car loans for bad credit.