A Great Collection of Nonsense From a South Of The Border Guy

Credit History… Myth or Reality?

In Building Bridges on April 16, 2009 at 9:07 am

We keep on building bridges here. Today I’d like to raise the subject of the famous “Credit Score” or “Credit History” (am I talking about the same thing here or mixing them up?)

You can imagine that many of us are arriving kind of late to make history on something. We arrive at an average age of 35, 38 years old. late for starting a new career, late for going to school again, late for building a credit history. By the time we must start with many of those things, the average canadian has at least 20 years of story already! the problem is, that we must “compete for the same resources” even with this disadvantage.

So, given all this…How do you build a good credit history? What are the cornerstones of it? What are the best advices you can give to a newcomer in order to be able to get a good credit score? What are the Do’s and Dont’s of all this? Can you recommend any on-line resources, books, etc. where a new canadian can learn more about this?

And a bonus question… Is it true that being in the welfare totally ruins your credit history and once there your credit is fucked up for ever?

Thanks for helping me building this bridge!

  1. As far as I know, the only thing that ruins your credit history is having a collection agency on your record or declaring bankruptcy. The best way to develop a credit history (no matter what age) is to collect some credit cards. Get a Sears Card and other store cards. Anyone can get one. Buy stuff with the card, but pay it off immediately before the interest accumulates because the interest rates are astronomical. Get a VISA card. Pay it off promptly. Presto! You have a credit rating. Having a bank account is also good. Don’t make the mistake of cashing all your cheques at one of those Money Mart places.

  2. And no, being on welfare does not ruin your credit history forever.

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