How to use a credit card to build your credit report

Discover the different ways to use a credit card to build your credit history in Canada.

If you’re looking to build your credit history, especially if you’re still young, you should consider getting a credit card and using it responsibly. However, this solution is also ideal for those who need to rebuild their credit after financial difficulties.

Having good credit is important these days. This means you can qualify for better rates when applying for a car loan or mortgage. It can also improve your chances of finding a new apartment to rent, as the landlord will likely check it out too. If you’re looking for a new job, potential employers may consider your credit score before hiring you, and insurers may use it to set your premiums.

Remember that, although convenient, debit cards will not help you build a credit history. This is because these cards do not require credit, as you are simply spending your own money, and these transactions are not recorded by major credit agencies.

Here are three easy ways to use a credit card to help build your credit.

1- Become an authorized user 2- Start with a secure credit card 3- Ask for a store card 4- Use Preapprovedtotal to build your credit history