Canadian immigrants: credit score analysis

At present, the market share of credit cards in China is gradually increasing, and many people have become slaves because of credit cards. However, many applicants who immigrate to Canada do not know that credit cards have more functions in Canada, especially credit card points. For some new immigrants in Canada, credit score is a strange word, but its role should not be underestimated. Banks and other credit institutions know your financial situation through credit points. Your credit score determines whether you can get a mortgage or a credit card. Let's take a look at how Canadian immigrants increase their credit scores.

What is a credit score?

A credit score is an assessment of your financial situation. Credit reporting agencies Equifax and Transunion use 300 to 900 points to define credit points. A higher credit score can increase your chances of getting loans, credit cards and mortgages. Moreover, the higher the credit score, the lower the loan interest rate obtained in the bank. Several important factors determine the credit score: payment record, whether there is a bankruptcy record, and the amount of outstanding debts.

How to increase credit score

It takes time to establish a good credit score. We also give some short-term or long-term ways to increase credit points.

Credit history: For young or new Canadians, they don't have a good credit history, so they have few credit points. One way is to apply for a credit card to prove that you can use it responsibly and pay off the loan in time. If you can't get a credit card, some banks will provide a safe credit card. You can deposit a deposit in this card, and then you can borrow money with it. Always use this credit card, as long as you change the loan on time, your credit score will increase.

Credit card limit: Do not exceed the overdraft limit of credit card. Usually keep the loan amount below 75% of the overdraft limit.

Pay off debts: Paying off loans and credit card loans as soon as possible is very helpful to your credit score.

Pay off bills: although bills such as electricity, internet and telephone charges are not included in the credit score, debts related to companies that collect arrears are included in the credit score.

Frequency of inquiry: Every time the lender asks about your credit score, your credit rating may also drop.

Stay where you are: Time is very important for credit score. The longer you pay your bills in time and use your credit card responsibly, the higher your credit score will be. Doing a job or living in a place for a long time can also increase credit.

The above contents are related information about credit card points. These six ways can increase the credit card points of new immigrants in Canada. If you have the habit of using credit cards in China, you can also use credit cards in Canada and earn points through various channels. In this way, Canada's credit report will involve many economic activities in its own life, which will facilitate the economic problems involved in daily life after immigration.