At some point, you need to start building your credit score, but doing so can be a lot harder than you might think. It’s more than just waiting around for better credit. To be able to borrow money, you need access to credit, but to access credit, you need to have a proven track record. It’s a little bit of a vicious circle. Thankfully we have a couple of tricks to help you improve your credit score. However, make sure whatever you do, do not take out more credit than you can handle as that will damage any hard-earned work you’ve put in.
Apply For A Secured Credit Card
Getting a secured credit card is a great way to build your credit score. Secured credit cards are credit cards that are only given to you if you have money to put down as collateral. It’s a way for people with no credit to build their credit history with minimal risk to the credit card company. Your credit limit will be equal to the value of the money you put down, so it’s wise to begin with small increments and go up from there. It’s important to note there are requirements to qualify for a secured credit card, but they are not as difficult as regular credit cards. For example, you need to have permanent resident status, a bank account in good standing, and you need to go to an actual bank location to apply.
Get A Co-Signed Loan
If you’re seeking a more substantial loan for a specific purpose, a family member or friend in good financial standing may be able to help you by co-signing the loan. Co-signing means that an additional person is willing to take responsibility for loan payments in case you cannot make payments. Co-signed borrowers make people with no credit history more appealing to lenders, as they have more assurance they will be paid back. Then when you do make payments, the bank will recognize you as a reliable person and increase your credit score.
Remember, a co-signer is just as responsible for your loan as you are, which means that if you are unable to pay for the loan, they’ll be held liable, and their credit score might suffer.
Get A Mobile Phone Plan
This may surprise some people, but using a mobile phone can help you improve your credit score. Some phone carriers like Telus or Rogers will work with customers who have no or low credit score to get a mobile phone and report payments to credit bureaus. This approach is ideal because you’re getting a valuable service, giving you more incentive to pay on time.
Apply For A Payday Loan
Payday loans are short-term loans that you don’t need to have a good credit score to obtain. These loans are true to their name in that they’re paid back by your next paycheque. Online payday loans are the same thing, just loans that can conveniently be applied for online.
If you need to get a cash advance, then fill out our application either in person or online. The entire process takes around 20 minutes for approval.