Moneyproblems.ca is about finding experts who can help you manage your way out of debt problems with great information and advice. Today we bring you a guest article from the experts at Ratehub.ca.
Ever looked up your credit score? That three-digit number means a lot when it comes to renting property, buying a house, or even getting a job. Many people have slips in paying back bills or taking on too much credit, but you should know that these mistakes have long-standing consequences.
Damaging your credit can happen without you even knowing it. If you move and forget to pay your last hydro bill, your credit score goes down. If you miss a credit card statement and pay it after the due date, your credit score goes down. If you file for bankruptcy, your credit score definitely goes down.
As much as credit cards can cause you trouble if you max them out or miss payments, they can also help you out. If you want to rebuild your credit, look to these cards as your first step in the right direction:
Home Trust Secured Visa
A secured credit card is similar to a debit card or a gift card—users deposit cash onto the card as collateral funds, then spend that money. Anyone can get a secured credit card like the no fee Home Trust secured visa card; there are typically no salary or eligibility requirements. Even those who have been discharged from bankruptcy or who have filed for a consumer proposal are eligible.
Essentially, this is for people who are starting from the bottom or who have had serious financial problems. It’s a tool that exists so you can begin to pull yourself out of debt. Keep in mind that this card doesn’t allow balance transfers and has an interest rate of 19.9%, so you do have to be responsible with it.
Home Trust Secured Annual Fee Visa
This is a slight step-up from the card above. If lower interest is important to you, the Home Trust Secured Annual Fee Visa is a good idea. It has an interest rate of 14.9%, an annual fee of $59, and is another valuable tool to raise your credit score.
Student Credit Cards
For those who have no credit and are just starting out, student credit cards exist to give you that first push. The Scotia L’earn Visa has a low limit to make sure you don’t go overboard; so it’s the perfect card to begin with. The StudentAwards MBNA Rewards MasterCard is another good choice, as it’s a student card with redeemable points toward card back, donations, merchandise, or even travel.
If these don’t appeal to you, you should compare credit cards to find one that works with your lifestyle. Just be responsible, pay down your balance every month, and your credit score will start to increase.
Ratehub.ca is a financial services comparison site that helps Canadians find the best products to meet their needs. The education centres, tools and calculators were designed to empower users to make smart financial decisions.