If you’re new to Canada and have sorted out with the essentials like getting your SIN, setting up a bank account, and getting a local cell phone plan, the next step is often buying a car. Life in Canada without a vehicle isn’t impossible, but it can be incredibly difficult.

However, without a good credit score, getting a Nova Scotia car loan can be difficult. Banks and cooperative unions are willing to work with no-credit borrowers, but they come with some downsides like high-interest rates or low loan limits. Here are a few things to help you build credit:

Pay Your Bills in Time

Credit reporting agencies track your payment records, so paying your bills on time or before the due date helps create a positive impact on your report. This includes paying off utility bills, cell phone bills, credit card bills, etc. For credit cards, you don’t have to pay the entire balance; pay off a little more than the minimum balance to improve credit utilization ratio and raise credit score. Missing payment due date not only attracts penalties but also negatively impacts the credit score.

Apply for a Secured Credit Card

A secured credit card is just like any other credit card except that you have to put down a security deposit that matches the size of your credit limit. This money will be used if you default on your monthly payment. Your monthly repayments will be reported to credit agencies, allowing you to build a positive credit history. Unlike unsecured credit cards, these are a little easier to get. And if you’ve not missed a due date over some time and have proven to be financially responsible, the bank will release your security deposit.

Use Credit Regularly and Responsibly

If you come from a culture where borrowing is looked down upon, it’s natural for you to be hesitant to use a credit card. But if you’re trying to build a credit history, it’s important that you use it! You can always owe responsibly by going through your credit card statement carefully and not spending more than you can afford.

If you’re new to Canada and looking for a car loan, visit us! We are auto dealers specializing in New Brunswick car loans. We work with people with bad or no credit and offer a great deal on cars as well.