880 Walkers Line, Burlington, ON, L7N 2G2, Canada

How To Build A Credit Score From Nothing In Glen Abbey

How To Build A Credit Score From Nothing In Glen Abbey

If you have just moved to Canada, just left home or school, you’re probably not going to have made any big purchases. So you're going to have to build credit score from nothing. Even if you don’t need credit now, you will in the future and building a credit history is all about the future!


That’s especially true if you think you’ll need a car loan in Glen Abbey. Canada is built around the car and while city areas have fantastic public transport, head out of the city, you’re on your own.


Credit and credit history


Even if you have 20 years of credit history in your home country, move to another country and you have to start over. It isn’t fair but that’s how it is.


Fortunately, with some time and patience, anyone can build a credit history from nothing. Here’s how:


Get a bank account – Your first step is to get a bank account. You’ll need it for automatic payments and to be the linchpin of everything else you do. You could go with a bank that also operates in your home country as they will know who you are. Most banks will offer basic accounts though.


Get a credit card – Young people have specific credit card options while recent arrivals also have specific deals like Royal Bank’s “Welcome to Canada” package. If you qualify, get a credit card, set up an automatic payment for the minimum amount and begin using it for daily costs. Always pay it off in full each month.


Secured credit card – If you cannot get a standard credit card, a secured credit card is the next best thing. It requires a security deposit much like an apartment, which will be returned as long as you pay off the card in full. The same rules apply here, use it all the time but pay it off in full each month.


Get a phone – While it’s a small thing, getting a phone contract can help build a credit history. Use a contract though and not pre-pay as those don’t impact your credit. Get a phone contract, set up an automatic payment from your bank account and you’ll begin creating a payment history.


Utilities in your name – Try to avoid all-inclusive apartments if possible. Get utilities in your name, use your bank account to pay them and you’re adding to your payment history in a small way every month.

How Long it takes to Build Credit Score From Nothing


Expect to spend around 18 months to 2 years building a credit history sufficient to access a standard auto loan. If you need a car before then, you can access specialist loans or bad credit car loans.


We can help with those if you need us to. We can help you find a car too!


We will use all our skill and experience to deliver the lowest possible Glen Abbey car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: Auto Loan

Tags: , ,