Posted on: 13-10-04 09:15:05
Hi everybody!
I am a prospective immigrant and have been surfing through CD for a while and see a lot of discussions on Credit line.I see a lot of advice given to newcomers to get a credit card as soon as you land, and build up a credit history ASAP by paying off total outstanding before or on due date.
It might sound a bit naive but I need help in understanding the need of doing this.Is it required for getting a good rate on Mortgage later when you purchase a house?We desis have grown up abhoring credit cards and I personally prefer Debit cards.
Why get into the Credit Card trap at all?
Quote:
Orginally posted by Ragda Patties
Hi everybody!
I am a prospective immigrant and have been surfing through CD for a while and see a lot of discussions on Credit line.I see a lot of advice given to newcomers to get a credit card as soon as you land, and build up a credit history ASAP by paying off total outstanding before or on due date.
It might sound a bit naive but I need help in understanding the need of doing this.Is it required for getting a good rate on Mortgage later when you purchase a house?We desis have grown up abhoring credit cards and I personally prefer Debit cards.
Why get into the Credit Card trap at all?
If you don't have a credit history you may not be allowed to get a mortgage.. If you are in a position to finance your house upfront without a mortgage .. then you don't have to worry.. There are things you can't buy using Debit Cards.. Credit Cards are really important in Canada.. If you want to book a air ticket.. or rent a car .. or stay in a hotel.. Credit Card makes the whole thing a lot simpler.
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Your attitude, not your aptitude, will determine your altitude.
Quote:
Orginally posted by dfwrp
Quote:
Orginally posted by Ragda Patties
Hi everybody!
I am a prospective immigrant and have been surfing through CD for a while and see a lot of discussions on Credit line.I see a lot of advice given to newcomers to get a credit card as soon as you land, and build up a credit history ASAP by paying off total outstanding before or on due date.
It might sound a bit naive but I need help in understanding the need of doing this.Is it required for getting a good rate on Mortgage later when you purchase a house?We desis have grown up abhoring credit cards and I personally prefer Debit cards.
Why get into the Credit Card trap at all?
If you don't have a credit history you may not be allowed to get a mortgage.. If you are in a position to finance your house upfront without a mortgage .. then you don't have to worry.. There are things you can't buy using Debit Cards.. Credit Cards are really important in Canada.. If you want to book a air ticket.. or rent a car .. or stay in a hotel.. Credit Card makes the whole thing a lot simpler.
Hi Ragda Patties,
NO body would like you or any one to fall into credit card trap and in fact every one should use his/her credit juditiously. However, the North American society works on credit and any service you want to use, they would like to check your credit history/record first before advancing you any credit.
As DFWRP has put it correctly, its not only mortgage rates for which you need good credit rating but practically for any service, be it getting phone service, cellular phone, long distance service, car loan etc. etc. etc. you need to have credit history as these service providers believe that your 'past actions dictate your future actions' and they would like to know if you are responsible in managing your credit or have intentions to pay. This they will only come to know if you have borrowed money or used services on credit and paid for the same in time as agreed. No matter how much money you have in your bank account but its your habits of managing your credit and repaying money that counts.
And all desis (included my self) who have advised people to build credit history are telling from their own experiences for the benefit of new immigrants.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
