If you’re planning to borrow money, the value of a positive credit score cannot and should not be overlooked. You’ll need it behind you if you want to start your new life on the right foot, with the ability to secure a mortgage or rely on a loan to get yourself and your business set-up somewhere different. 

But recognizing you need something and actually obtaining it can be two very different things, especially where credit is concerned. That’s the entire reason we wrote this article. Providing three top tips and tricks to inspire you, here’s how to build the positive score you require… 

 

Start with non-credit products 

The irony is that the best way to build a positive score is by borrowing, but let’s take it back a step to see how you get to this point. The answer is by opening up a few non-credit products, beginning with a bank account. This proves to lenders that you have passed stringent identification checks, have a job, a permanent Canadian address, and the correct identification. 

Once you have your bank account, there are certain easy ways to increase your appeal still further, such as adding yourself to the electoral register. This helps to confirm your identity to credit reference bodies, so get yourself on it ASAP. If you’re not eligible to vote, approach one of the major credit agencies instead and provide proof of your identity to them as an alternative. 

Last but not least, make sure any utility bills are in your name, as lots of these companies will pass information to reference agencies in order to establish your ability to pay. 

As expert James Jones explains: “These days, many firms routinely share payment information through the credit reference agencies, including about mobile phone contracts, gas and electricity accounts, and even some domestic water accounts. This means it’s probably easier than ever to build up a digital body of evidence that will help you quickly and easily be assessed and accepted for credit.”  

 

Apply for a Canadian credit card

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But wait, how do you do that when you haven’t yet built up any credit? Hopefully, by this point you’ll have followed the steps we talked you through above, but that’s not the only thing you can do to help yourself. There are also a number of issuers who will be willing to overlook poor or non-existent credit, and you can find a handy list of these Canadian credit cards for bad credit. Take one out, pay the balance on time every month, and keep your credit utilization below 30 percent, and you’ll build a positive score in no time, thus opening the door to bigger and better things. 

 

Get a Cosigner 

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Should you find you’re turned down for credit on your own behalf even after following the steps above, there’s something more you can do: get a cosigner. Although this might not be an option for everyone, it’s a good way to piggyback onto someone else’s solid income and credit history, and in doing so, increase and improve your own. This only works, of course, if you have an eligible individual who trusts you enough to take responsibility for any debts you accumulate and can’t pay yourself, but it’s certainly something to consider if you have a suitable person to lean on. 

 

Isn’t it time you set to work and started improving your credit score?