robchappell

I've recently moved to Canada (1 year now!) and in that time I've had one credit card and one cell phone plan. Because I didn't have work when I first arrived my credit limit was $1000. I pay it off in full every month and have never paid interest, nor have I ever missed any payments on my cell phone account.

Having done that for a year I'm now looking at applying for another credit card but decided to check my credit score with TransUnion first. I signed up and saw my credit score was listed as "poor". I'm struggling to understand why since I've tried to be as good a customer as possible. I noticed that my credit card balance was listed as being a little over the $1000 limit, which could happen because I frequently pay off some of it as I'm approaching the limit and then continue to spend, which may produce a balance greater than my limit, even though I never go over it. And the payments section listed $145, which may be the last payment I made, but certainly doesn't reflect all the payments I made in that month.

I know the 'scores' from the credit agencies are aribtrary but it still concerns me that I might struggle to get approved for future credit, despite being perfectly solvent and having a low debt to income ratio.

The 'advice' section of the credit report suggests that I should keep my balance below 35% of my limit, which seems ridiculous given how much needs to be spent on credit cards (online purchases, etc), not to mention the cash back. I thought it would was good to put as much spending on the credit card as possible and then pay everything off each month in full?

I don't want to increase the limit of this card since that itself could affect how much credit I would be eligible for if I applied for another card. Is there another way? Am I doing something wrong?

scilly

Have you tried Equifax???

Kanukki

I would also recommend checking Equifax. You can check your credit score/report for free using various services:

www.creditkarma.ca (Transunion credit score and report)
www.borrowell.com (Equifax credit score and report)
www.mogo.ca (Equifax credit score)

rawsalad

I think a credit check service is available for free through your bank which won't impact your credit rating. Might be worth a try.

Phaedru5

My credit score here sucks despite having a well paying job, a mortgage, paying all my utility bills, 3 phone bills, car payments etc all on time. I have only been here under a year. But I recommend go in and talk to the bank where you are looking to apply, thankfully Canada still works with 'people' and not just machines. I was able to talk to an advisor at RBC who looked at my whole situation and not just an automated credit report to make a decision and was granted a really good card that I wanted on that basis. Makes such a nice to change to the 'computer says no' approach I always encountered in the UK. The only thing I havent been able to do on credit was buy furniture from The Brick!

Aviator

It is not, banks only do a credit check when one applies for credit. Every credit check that is done impacts a credit rating. The ones that don't are the credit bureaus checks you do yourself.

neill

Try to keep your credit usage below 30% of your limit, best way is to take out another credit card thus reducing overall load for the same balance. Also consider a loan of some sort. These things will help raise your score.

Vulcanoid

Depends on the setup - eg RBC have a link to your Transunion score in online banking which you can check whenever with no hit. So you're doing the credit bureau check (no impact) but it's available free through the bank. Just a matter of phrasing.

Photoplex

You can check your own credit file, for free, online, with Credit Karma. It not only shows your credit scoring (TransUnion CreditVision), but also all your credit accounts, their current status, balances, limits, amount past due, worst payment status etc.

And no, it's not a "hard hit" on your credit file or anything like that...

There's also another service called Mogo which I think gives your Experian credit score, although this one does not give details of each of your credit accounts.

Siouxie

Despite banking with RBC for many years I wasn't aware of this - so thanks! Good to be able to see it instantly - and play around with the tool to ascertain what would impact it or increase it!

Kiowan

Your problem is your credit utilisation ratio, you are keeping a high balance on your only card, so even if you keep it at 80% then pay it end of the month then because it's your only form of credit you are almost fully using all the credit available to you and this is considered bad for your credit score.

I experienced similar to you, first credit card was $1000 and I even had to to secure it with $1000 deposit so it wasn't actually credit at all. This was removed after 1 year, around then I checked my score with Credit Karma and it was very good so I applied for a different card and I got it....with $1000 limit, my income etc is very good, one cell phone plan, never behind etc. I had to put up with this vitually useless credit limit for 2 years then just recently both banks started automatically increasing my limit and it's way more than i'll ever need now.

With your card you need to basically pay it off as you use it, keep the balance down to $300 max as suggested (30%), and do not do what you've been doing by paying it off then spending more and temporarily going over the limit, because payments over here often take 3-5 days to physically clear on credit cards so you may well actually be going over your limit as far as the system sees it and this will really hurt your score, I suspect that's why it's so low, if the credit report shows overlimit then that's exactly what you've done.You won't get told because you paid it off and it went back down again soon after. Also don't apply for limit increases, wait for them to offer it, I'd suggest changing the behavious, waiting for your score to hit good - very good then getting a second card, keeping utilisation low still and then just sit tight and wait for limit increases and take them. Never get a payday or short term loan to try and "help", these can wreck your credit rating simply by having one.

cheeky_monkey

I have been back 2 years and my credit rating is still crap..when i left in 2014 i made the mistake of closing my bank account and credit card etc..so when i came back i had zero credit rating..couldnt get car financing with Ford even though i was on their records as having car finance with them before which never missed a payment and was paid in full in 2013..even my own bank wouldn't give me a credit card..not even a secured one..so was stuck with a credit card with a limit of $300 and a car loan at like 30% interest..since then i have paid off that car loan and got another at 9% and my credit card limit is now at $1500..but my credit rating is still poor..even though i pay everything off in full and never miss payments...i earn in excess of $150k a year..but cant get naff all..my credit rating even went down in 2018..im guessing thats because i took out another car loan?

rawsalad

I think everytime a company et al look at your credit rating and refuse you your rating goes down?

I'm in a similar boat - but I was in the UK for 15 years so closed everything but the RRSP down. I had no real reason to return - until my dad got ill - that's life. So now I've landed here with no credit record at all and crossing fingers my bank might be nice enough (after a sweet talk) to give me a credit card with a low limit. Can't do much here with interact not like you can with visa debit. Transferwise offer a mastercard debit - haven't seen any place yet that will accept that.

sigh.

Almost Canadian

I thought all of the banks offered Visa on their debit cards. We bank with TD and my 15 year old daughter has one.

rawsalad

I am with RBC and curiously the representative didn't mention it on the day. Mind you there was a lot going on with RRSP, Investment and bank accounts flying this and that. So hopefully at the next appointment in two days..that form will be filled in.