How To Get Credit

by Tax Guy - Burlington Accountant on July 16, 2009 Print This Post Print This Post

If you are starting out or starting over, basic credit is important. Without basic credit, you ability to obtain some basic necessities such as telephone service, hydro and cable can be impacted.

If you are not sure if you have a credit history or not sure of what your credit report looks like, you can obtain a copy of your credit report for free by writing to Canada’s two major credit reporting bureaus:

  • Equifax Canada Inc. Equifax Canada Inc. Consumer Relations Department, PO Box 190 Jean Talon Station, Montréal Quebec  H1S 2Z2, Telephone: 514-493-2314, Toll-free: 1-800-465-7166, Fax: 514-355-8502,,
  • Trans Union TransUnion Canada – Consumer Relations, 709 Main Street West, PO Box 338, LCD 1, Hamilton Ontario  L8L 7W2, Telephone: 905-525-0262, Toll-free: 1-800-663-9980,

Again there is no charge if you ask to see your report by mail but you may be charged to view this information through the internet.

It is important to periodically check your credit report (one a year is recommended) to ensure that information on the report is accurate and reflects your credit history.

Ways To Establish Credit

There are a number of ways you can begin to establish credit. Remember you must start small and build a history that shows you are responsible and pay your bills on time. Some common things you can do are:

  • Establish a chequing account at your bank,
  • Obtain telephone, cable and hydro service in your name. You may need to provide a security deposit. However, you can ask for the deposit back after a period.
  • Obtain a secured credit card. Ask your bank how it works. Typically, you need to deposit 1.5 times the credit limit with the bank and purchase a GIC. For example to get a credit card with a $1,000 limit, you will need to provide $1,500 of collateral to the bank. Again, after a period you can request your funds back.
  • Gas or department store credit cards are easier to obtain and can be good ways to establish credit. Be careful to pay you bills on time because the interest rates on these cards can be much higher than traditional credit cards

Other Thoughts

Credit cards are excellent tools to establish credit and, if used wisely, can save you money. However, they are the most expensive loan you can take out so be sure to pay your bill before you have to pay interest.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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{ 1 comment }

Tracaitim July 16, 2009 at 7:23 am

I started my credit rebuilding, after ditching my student loans for a few years, with a Capital One secured card. They have an annual fee, but offer either a 1:1 secured line, or better (Mine was 75 bucks for a 750 limit . . . my spouse was 200/200).

A couple years of paying my loans, a year of use on the secured card, and now I’m in a house with a regular mortgage. I always make sure to mention the Capital One offer to anyone who mentions credit issues.

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