Instructions for Canadian immigrants to use credit cards

First, how to apply for a credit card correctly

The first time is always the hardest. Around 20 10, the Bank of Canada will also ask foreign students and others who have no income and credit records to freeze a certain amount of Canadian dollars as deposits, or ask for a letter of guarantee from parents to prove remittance/funds.

Students who have no income have the lowest overdraft limit, which is about 500 Canadian dollars, and the lowest is even 300 Canadian dollars. At the same time, only some credit cards are open to students. For example, CIBC generally only issues classic credit cards to international students. After a period of time, credit accumulation or credit card expiration, you can provide credit cards such as HBC.

Nowadays, the competition among major credit institutions is fierce, and the procedures for applying for credit cards have been simplified a lot, but there are also some minor problems that need attention.

Fortunately, as students, some banks will provide students with student credit card business at the beginning of the semester. Although the amount is not high, it is easy to apply, and there are various preferential policies for fee reduction, which are very suitable for students.

But for new immigrants, you must be careful when applying for a credit card: what is your occupation?

If you are a student, when you look for a job after graduation, the contents of your credit file about your career will be covered by new ones. However, for those new immigrants who have business in China but have no job in Canada for the time being, or women who have not held a certain position in the family business, answering this question by saying that they are unemployed or housewives will greatly affect their success rate in applying for loans in the future. Even if you show the domestic company certificate later, it is difficult to convince the bank that you have enough income.

Therefore, when answering questions about occupation and income, we must think carefully. If you have business in China, you can say that you have business in China. Under normal circumstances, the bank will not ask you to provide proof.

For those who apply for a credit card for the first time, if they have no plans to buy a house or a car in the near future and have no time to accumulate points, they can consider applying for a credit card in supermarkets and shops. These credit cards have low requirements for applicants. In order to attract customers, there will be various preferential measures, such as points and other policies. But be careful, these credit cards have high requirements on repayment time and minimum repayment amount, and there are many punitive clauses. When choosing, be sure to ask clearly and read their terms carefully.

Second, how to maintain a good credit score

1. Good start:

If you want to borrow money to buy a house or do business within a few years after you apply for a card, you still have to apply for a bank credit card. Although it will be more difficult to apply than other credit cards, or it will put forward many requirements for you when applying, the bank's credit card is still beneficial in helping you accumulate credit points. So it doesn't matter even if the bank only approves the overdraft limit of 300-500 Canadian dollars at first.

As long as your repayment record is perfect, your credit score will rise faster. And apply for a bank credit card, and you can start to improve your overdraft limit and credit score after 3 months. The higher the overdraft limit, the higher your credit. Of course, the upper limit of the overdraft limit should be set according to your own needs.

2. A good credit record includes:

If you fail to apply for a credit card, don't rush to apply for the next one, because even if you apply immediately, you may fail again. Because every time you apply, the credit card company will deduct the credit point of 10 when inquiring about the application qualification. It's really not worth hurting your credit record for a gift of more than ten dollars. Moreover, the extra credit card you applied for will not be used, and the cancellation of the credit card will also have a bad impact on your credit.

In addition, applying for loans (including commercial loans) requires three credit records. If you only keep 1 common credit cards, the bank will refuse the loan application because it can't get enough credit records. So if you want to consider applying for a loan, you need to hold three commonly used credit cards with good repayment records. Such three credit records can meet all your credit needs. Moreover, the credit card of any card issuer is valid, so you can go to the supermarket you often go to for a credit card. The application interval of each card is more than 6 months.

Of course, the more credit cards, the better. If you already have 4-5 credit cards, you really don't need to apply for more.

3. Be sure to pay back the money carefully:

Earnest repayment is the most important thing to accumulate credit points. Don't be too lazy to go to the bank just because you only spent 1 yuan this month. Two months in arrears will have a bad influence on your credit record, which is not alarmist.

If you can pay it off every month, even if you can't pay it back that month, you should also pay the minimum repayment amount to avoid leaving hidden dangers. Now many banks can set a minimum repayment amount. If you are afraid that you will forget to repay on time, you might as well let the bank automatically repay for you every month. Frequent use and timely repayment are ways to quickly increase your credit limit.

4. Check your credit history in advance:

There are two credit bureaus in Canada, both of which provide online inquiry function, and the inquiry fee is about 10 Canadian dollars. You can also ask them to send you a letter report for free through the post office, and the waiting time is about 60 days. In the credit bureau, everyone's credit record not only records your credit card repayment, but also records whether you are in arrears with your bills, whether you are bankrupt, whether you are being recovered by debt collection companies, whether you are in arrears with your rent, and whether you are claimed for losing a lawsuit. And each bad record will be kept for at least 3 years, usually 6 years, and at most 14 years.

There is nothing particularly wrong with the credit record, but those who need credit points should at least start to repay their loans seriously before 1 year when they need credit records, and they can only start to improve their scores after 6 months.

If one party's credit record is not good enough, another person with good credit can provide credit guarantee for the other party when he/she borrows money.

Third, tailor the credit card for yourself.

After the above two steps, you can be regarded as a credit card expert, but do you know how to find the best credit card for yourself and your relatives and friends? FCAC, a Canadian financial consumer protection agency, provides a web page for comparing and selecting various credit cards. You can choose the credit card that best meets your needs by following the steps below.