Does someone with only supplementary credit cards have a credit history? How will the person be evaluated while applying for mortgage or fresh credit card?

Thanks a lot

Find out from your bank if they report both the cardholders to the credit bureau.

Also see http://www.canadiandesi.ca/read.php?TID=10142&page=2

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Hi Rainin,

If a person has only an add-on card/secondary credit card then it is not reported to the credit bureau for reasons of convenience to the bank/credit card company. However, they will include the secondary card holder's name in their marketing database. When usage of a secondary card exceeds a certain limit - the database will trigger an automatic pre-approved offer for that person,, say a pre-approved card with $1000 limit. It doesn't mean that they wont do a credit check when you actually accept the offers.

Banks are in the business of lending and will normally issue a first card even if the person has no credit history, based on the fact that they know this person for so long. It also helps if 1) the secondary card holder has the same address as the primary applicant and 2) the secondary card holder's salary is being deposited into the same bank's account.

Credit history starts and is recorded from the day when a person's name, address, lender's name (bank or card company) and max credit timit are reported to the credit bureau. This happens when a new trade is booked, i.e., when the Bank issues a credit card with a certain limit and lets the credit bureau know about it.

Also it is good to know that a credit card is not the only way to establish/start your credit history. If you have a monthly billing account with a cell phone company or a home phone, it is similar to revolving credit. The phone company will start reporting your monthly payments to the credit bureau from the first month onwards. Within 6 to 12 months, if there are no late payments, your credit score will be within range for a first credit card.


This combined with other details like depositing salary into the same account for 6-12 months, having a savings/RRSP account and other factors like job stability, will count when you apply for new credit like a loan or mortgage.


Sincerely,

Thanks TO-Puttar,
That clears up lot many doubts. Much appreciated.

Hi TO,

Your reply is of real professional quality. Great!