People migrating to Canada soon realize that it’s nearly impossible to make important purchases without good credit history – whether you’re looking to buy a car, a cell phone, or even renting a house. Fortunately, building credit history isn’t difficult. Here are three tips to help you create a good credit history:

Buy a credit card:

Although banks need proof of credit history before offering a credit card, they do make special consideration for newcomers. The Scotiabank, for example, offers the StartRight Program to help people who do not have a credit history in Canada. Banks also offer a secured card, i.e. you can use it as a regular credit card but not before you deposit some money as security. Once you have received your credit card, remember to use it responsibly. Buy things using the card, but pay in full and on time. Make sure that you are aware of the interest rate and other charges for late payment. But if you cannot afford to pay in full, make sure you pay more than minimum so that you pay off the debt quickly.

Open a bank account:

The best thing about Canadian banks is that you have multilingual staff ready to help you – all you have to do is to ask for assistance! You will need a photo ID – this could either be a passport or a driver’s license. You can now ask your employers to deposit your salary into this account. To build a credit history, use the account to pay bills and make purchases.

Apply for a loan:

You may also apply for a small loan from your bank, but remember to repay on time. You could also buy a new/used car through dealers specializing in zero/ bad credit auto loans.
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