Credit Score Canada: Tips needed
Jul 29, 2009 | 3:35 pm
#1
Original Poster
Join Date: Oct 2008
Location: Toronto, ON
Programs: HH Gold VIP, BonVoy Gold, BAEC Gold, AmEx Platinum, Visa Infinite
Posts: 689
Credit Score Canada: Tips needed
Hi guys,
I have moved to Canada recently. I would like to have some tips regarding credit scoring and how to improve the credit score in Canada. And what to avoid while using your credit card.
I have received a credit card from the bank I am dealing with. Since this was my first card in Canada they gave me a very low limit card (1,000 CAD). Ofcourse this does not cover my needs and expenses and I am capable of paying more than that a month.
What I am doing at the moment is to put more money on the card to be able to use it.
For an example, during my first month, although my limit is 1,000 CAD I have used 5,500 CAD and my balance came out -72 CAD (meaning I over paid the card). I was putting money every week on the card to make sure it is usable. Basically there were alot of periods in that month were I was basically using the money I have put on the card. Other times I was using the credit given.
My questions:
1- Will my behavior have a good or bad effect on my card if I continue doing so?
2- Is it good or bad to over pay the credit card?
3- What is the best and fastest way to improve my credit score to raise the limit of my card?
Other notes or suggestions are very welcomed.
** I have searched for a similar topic but couldn't find something related to Canada.
I have moved to Canada recently. I would like to have some tips regarding credit scoring and how to improve the credit score in Canada. And what to avoid while using your credit card.
I have received a credit card from the bank I am dealing with. Since this was my first card in Canada they gave me a very low limit card (1,000 CAD). Ofcourse this does not cover my needs and expenses and I am capable of paying more than that a month.
What I am doing at the moment is to put more money on the card to be able to use it.
For an example, during my first month, although my limit is 1,000 CAD I have used 5,500 CAD and my balance came out -72 CAD (meaning I over paid the card). I was putting money every week on the card to make sure it is usable. Basically there were alot of periods in that month were I was basically using the money I have put on the card. Other times I was using the credit given.
My questions:
1- Will my behavior have a good or bad effect on my card if I continue doing so?
2- Is it good or bad to over pay the credit card?
3- What is the best and fastest way to improve my credit score to raise the limit of my card?
Other notes or suggestions are very welcomed.
** I have searched for a similar topic but couldn't find something related to Canada.
Jul 31, 2009 | 10:00 am
#2
Join Date: Aug 2004
Location: YYZ
Programs: AA LT Plat, Hilton Diamond
Posts: 1,143
I suggest applying for a MBNA Canada card (probably the SPG MC). MBNA Canada has been known to be pretty liberal in handing out cards to newcomers and increasing limits regularly.
I should add that this was prior to the economic downturn - I'm sure their practices have tightened up a bit, but I don't know how much.
I should add that this was prior to the economic downturn - I'm sure their practices have tightened up a bit, but I don't know how much.
Aug 2, 2009 | 1:00 am
#3
Original Poster
Join Date: Oct 2008
Location: Toronto, ON
Programs: HH Gold VIP, BonVoy Gold, BAEC Gold, AmEx Platinum, Visa Infinite
Posts: 689
Thanx for the tip. I will definitely look into it.
I am looking into more how to manage my credit kind of thing. Meaning, if I have a limit of 1,000 and I average around 2,000 in monthly spending whats the best way of doing so. Mind you, I don't have any problem paying the card in full.
Do you think it is better to:
A- use the card till it almost hits the limit then pay it off?
B- Over pay the card from the beginning of the cycle an additional 1,000 to make for the expected extra charges?
Which one is better in building the credit history?
I am looking into more how to manage my credit kind of thing. Meaning, if I have a limit of 1,000 and I average around 2,000 in monthly spending whats the best way of doing so. Mind you, I don't have any problem paying the card in full.
Do you think it is better to:
A- use the card till it almost hits the limit then pay it off?
B- Over pay the card from the beginning of the cycle an additional 1,000 to make for the expected extra charges?
Which one is better in building the credit history?
Aug 2, 2009 | 7:32 am
#4
Join Date: Jul 2007
Location: Homebase: CAE - Formerly, YUL
Programs: US CP, UA, HH Gold, Marriott Plat, DL, AA, CO, ++
Posts: 2,188
Instead of wasting time with credit card companies that do not know who you are and send out credit cards blindly, I would go to my bank branch manager and have a polite conversation with him/her. I'm sure s/he will be in a much better situation to give you a credit card that matches your needs and evaluate your income properly instead of using a credit score.
HTSC
HTSC
Aug 3, 2009 | 10:40 pm
#5
Join Date: Mar 2009
Posts: 48
You might want to be careful with overpaying your credit card at such a high amount every month.
It may look fraudulent or set up red flags for money laundering.
Also depending on who your credit card company is, some of them say in the Terms and Conditions that you should not ever carry a positive balance on a consistent basis on purpose.
I would suggest you call your bank and see if they can set you up with a high limit card maybe with a deposit or something, TD does this quite well, you can get a secured VISA with as much limit as you put down and they put that money into a SAVINGS account earning you interest in the meantime.
It may look fraudulent or set up red flags for money laundering.
Also depending on who your credit card company is, some of them say in the Terms and Conditions that you should not ever carry a positive balance on a consistent basis on purpose.
I would suggest you call your bank and see if they can set you up with a high limit card maybe with a deposit or something, TD does this quite well, you can get a secured VISA with as much limit as you put down and they put that money into a SAVINGS account earning you interest in the meantime.
Aug 4, 2009 | 6:40 am
#6
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
Instead of wasting time with credit card companies that do not know who you are and send out credit cards blindly, I would go to my bank branch manager and have a polite conversation with him/her. I'm sure s/he will be in a much better situation to give you a credit card that matches your needs and evaluate your income properly instead of using a credit score.
HTSC
HTSC
Ask him/her what you need to go to get a higher limit. Opening a CD might sway them. In the meantime there's always interac.
Aug 4, 2009 | 7:24 am
#7
Join Date: Sep 2004
Location: Tampa, FL
Posts: 242
HSBC Canada
I'm guessing you are aware of this and other banks may have similar offerings but If you have $100,000 CDN looking for a home there's the HSBC Premier account which gives you a credit card -
The card that takes you places
If you travel the world, you need a credit card with the flexibility to match. The HSBC Premier MasterCard is accepted at over 24 million locations worldwide. It comes with a credit limit that can accommodate your lifestyle and free membership to a rewards program that will invigorate the most weary of travellers.
Advantages of the HSBC Premier MasterCard include:
* A local rewards program that entitles you to superb offers on shopping, dining, entertaining and travel experiences around the world
* Emergency cash advance of US $2,000 and next-day card replacement in the event of theft or loss
* A supplementary credit card for you or your child with full emergency assistance and support plus a credit limit that you control.
The card that takes you places
If you travel the world, you need a credit card with the flexibility to match. The HSBC Premier MasterCard is accepted at over 24 million locations worldwide. It comes with a credit limit that can accommodate your lifestyle and free membership to a rewards program that will invigorate the most weary of travellers.
Advantages of the HSBC Premier MasterCard include:
* A local rewards program that entitles you to superb offers on shopping, dining, entertaining and travel experiences around the world
* Emergency cash advance of US $2,000 and next-day card replacement in the event of theft or loss
* A supplementary credit card for you or your child with full emergency assistance and support plus a credit limit that you control.
Aug 5, 2009 | 4:55 pm
#8
Original Poster
Join Date: Oct 2008
Location: Toronto, ON
Programs: HH Gold VIP, BonVoy Gold, BAEC Gold, AmEx Platinum, Visa Infinite
Posts: 689
Thanx guys for your help..
I think my problem will get solved. I might end up saying god bless Amex. I contacted them for a global card transfer and they seemed willing to play ball. If it goes through and they do transfer my account then I won't have any credit problem.
Thanx alot for the inputs. I usually don't excessively over pay the credit card I always try to keep it even at the end of the cycle. So whatever I put on the card will be used during that cycle. Thats not considered excessively over paying, or is it?
I think my problem will get solved. I might end up saying god bless Amex. I contacted them for a global card transfer and they seemed willing to play ball. If it goes through and they do transfer my account then I won't have any credit problem.
Thanx alot for the inputs. I usually don't excessively over pay the credit card I always try to keep it even at the end of the cycle. So whatever I put on the card will be used during that cycle. Thats not considered excessively over paying, or is it?