1. How to apply for a credit card correctly

The first time is always the most difficult. Around 2010, Canadian banks will also ask for a freeze on international students and other people with no income and credit history. A certain amount of Canadian dollars is required as a deposit, or a remittance guarantee letter/fund certification letter from parents, etc. is required.

The overdraft limit given to people with no income, such as students, is also the lowest. It is basically around CAD 500, and the lowest is even only CAD 300. At the same time, only certain credit cards are open to students. For example, CIBC generally only issues Classic credit cards to international students. After a period of time when you have accumulated credit or the credit card expires, you will be offered credit cards that can earn points such as HBC.

Nowadays, competition among major credit institutions is fierce, and the procedures for applying for a credit card have been simplified a lot, but there are also some small issues that need to be paid attention to.

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

But for new immigrants, you must be careful about one question when applying for a credit card: What is your occupation?

If you are a student, wait until you find a job after graduation and put it in your credit file. Career-related content will be newly covered. However, for those new immigrants who have businesses in China but are temporarily unemployed in Canada, or women who do not clearly hold a certain position in the family business, answering this question by saying that they are unemployed or housewives will greatly affect themselves. The success rate of future loan applications. Even if you later show proof of your company in China, it will be difficult to convince the bank that you have enough income.

So when answering questions about occupation and income, you must think carefully. If you have business in China, you can say that you have business in China. Generally, banks will not ask you to provide proof.

For those who are applying for a credit card for the first time, if they do not plan to buy a house or a car in the near future and there is no time requirement for the accumulation of credit points, they may consider applying for a credit card from a supermarket or store. These credit cards have lower requirements for applicants. In order to attract customers, they will also have a variety of preferential measures, such as points redemption policies. However, you need to be careful that these credit cards have relatively high requirements on repayment time and minimum repayment amount, and there are many punitive clauses. When choosing, be sure to ask and read their terms carefully.

2. How to maintain a good credit score

1. A good start:

If you want a loan to buy a house or obtain a loan within a few years after applying for the card, business, then you should apply for a bank credit card. Although it may be more difficult to apply for than other credit cards, or it may require you to apply a lot, bank credit cards are still more beneficial in helping you accumulate credit points. So even if the bank only approves an overdraft limit of 300-500 Canadian dollars in the initial stage, it doesn't matter.

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

2. A good credit record includes:

If your application for a credit card fails, don’t rush to apply for the next one, because even if you apply immediately, it may fail again. Because every time you apply, the credit card company will deduct 10 credit points when checking the application qualifications. It’s really not worth it to hurt your credit record for a card sign-up gift worth more than ten yuan. Moreover, if you apply for extra credit cards and cannot use them, canceling the credit cards will also have a negative impact on your credit.

In addition, applying for a loan (including commercial loan) requires 3 credit records. If you only keep 1 commonly used credit card, the bank will reject the loan application because it cannot obtain sufficient credit history.

So if you want to consider applying for a loan, you need to hold 3 commonly used credit cards with good repayment records. Such 3 credit records can meet all your credit needs. And credit cards from any card issuer are valid, so feel free to go to your favorite supermarket to apply for a points rebate card. The application interval for each card can be more than 6 months.

Of course, more credit cards are not always better. If you already have 4-5 credit cards, there is really no need to apply for more.

3. Be sure to repay your debt seriously:

Serious repayment is the most important thing in accumulating credit points. Don't be too lazy to go to the bank just because you only have 1 yuan to spend this month. Two months of delinquency will have a negative impact on your credit record. This is not alarmist.

It’s okay if you can pay it off every month. Even if you can’t pay it off that month, you still have to pay the minimum repayment amount, so as not to leave any hidden dangers. Nowadays, many banks can set minimum repayment limits. If you are afraid that you will forget to repay on time, you might as well let the bank pay automatically for you every month. Regular use and timely repayment are ways to quickly increase your credit limit.

4. Check your credit record in advance:

There are two credit bureaus in Canada, both of which provide online query functions, and the query fee is about ten Canadian dollars. You can also ask them to mail you a free credit report through the post office. The waiting time is about 60 days. In the credit bureau, in addition to recording your credit card repayments, everyone's credit record also records whether you have defaulted on paying your bills, whether you have gone bankrupt, whether you have been collected by a debt collection agency, whether you have been in arrears with rent, and whether you have lost a lawsuit. Claimed etc. And each bad record will be kept for at least 3 years, usually 6 years, and up to 14 years.

For those who don’t have a big problem with their credit record, but just need to add points to their credit, they should start paying back seriously at least one year before they need a credit record, and they can start to improve after 6 months. Fraction.

If one person in the relationship does not have a good credit record, the other person with better credit can provide him/her with a credit guarantee when the other person takes out a loan.

3. Customize a credit card for yourself

After the above two steps, you can be regarded as a small credit card expert, but you know how to measure it for yourself and your relatives and friends. Are you looking for the most suitable credit card? FCAC (The Financial Consumer Agency of Canada) provides a webpage to compare various credit cards. Follow the steps to choose the credit card that best meets your needs.