Posted on: 21-10-05 13:50:14
I just got this idea for quickly improving credit history. Right now, none of the banks will give me a credit card as I am new here - TD refused a secured card as my SIN starts with a 9 and CIBC says I need to extend my W1 Visa to greater than 12 months before applying - all good and ok except I cannot extend the Visa till 2 months before it expires. So I am wasting precious time when I could have been building credit. Anyway this is what I came up with :-
I put $500 in a secure deposit account and the bank loans me $500 at some interest rate. I pay back the loan in 3 months with interest and take back my secure deposit. I'll lose some interest, but in 3 months I'd probably have build up some basic credit history and then I may qualify for a low-limit unsecured credit card.
Can any of you bank people let me know if this is a feasible idea? Should I talk to CIBC about this?
Thanks in advance.
go to scotia bank they have special deals for new immigrants. they have a secured credit card . we put down 1000$ and we got a credit limit of 1000 bucks so we started doing all ourr purchases on that and would return the amount every month. in 4 months thewy increased the amount and in 6 months we started geting offers for cards. so try that.
Hello Janmeja
Yep, if CIBC does not approve an unsecure card, I'll go for a secure card. But this loan is supposed to be something extra I do to increase credit build up :-)
But just wondering how feasible it - someone here who works for a bank would know better I guess.
Quote:
Orginally posted by Janmeja
go to scotia bank they have special deals for new immigrants. they have a secured credit card . we put down 1000$ and we got a credit limit of 1000 bucks so we started doing all ourr purchases on that and would return the amount every month. in 4 months thewy increased the amount and in 6 months we started geting offers for cards. so try that.
Scotia refused to give me a secured credit card even though I had five figures in a savings account. I also feel that Scotia has its nose up in the air. I recommend TD - great serive, got my secured credit card without any problems.
all banks have asystem of issuing a secured credit card.....I guess it's upto an employee whom one contacts....I work with a bank and I come across many customers who give me difft opinions abt difft banks including other branches of the same bank that I work with....I have heard of cases where new immigrants have been able to get secured credit cards from all major banks and the complete opposite of the same as well....My humble suggestion would be...just in case if any banker refuses to process your application to get a secured credit card....ask him/her to give you the reason for the same.....if you are not convinced feel free to contact the br mgr.....nowadays banking ind is so competitive that banks can't afford to loose customers like this....it's got a lot to do with the attitude of the banker you deal with....
to process secured credit card application, any banker has to spend same amt of time he/she would spend for a good loan or line of credit....so some of the employees just tend to avoid it....
hope this helps
-----------------------------------------------------------------
Let's help each other to grow & prosper in Canada
Hey Reachash
Could you answer the original thread question please? Thank you :-)
Another idea that was suggested to me is to get a car loan from a credit union when I buy my car (planning to buy an used car soon).
Can someone recommend some credit unions that are friendly to new people - specially W1 Visa holders.
