Credit is the driving force of our economy. It finances our homes, our vehicles and our vacations. It also helps us to pay for things like appliances or hotel rooms. In short, for many people credit is "the good life".

Credit allows you to carry less cash or rent a car without a lot of hassles. Credit is the only way you can purchase items online or to buy airline tickets.

Credit is neither good nor evil - it just depends on how you use it. The misuse of credit can ruin your financial health or destroy your self-esteem, marriage, and your entire life while proper use of your credit can make all your dreams come through!

Basically, credit is a promise to pay for something in the future that you received in the present - for example - mortgage is a type of credit. Mortgage allows you to make a very large purchase that you otherwise would not be able to pay upfront.

If your dream is to buy a home and you don't have the cash, you'll need to rely on credit to help you to achieve your goal. Today, if you have good credit you could, for example, purchase $200,000 dollar home with as little as 5% Down Payment and have smaller monthly payments than someone who has poor credit and who buys the same $200,000 home with 25% down payment.

Having good credit is a necessity in today's world, yet millions of Canadians are turned down for loans, mortgages and credit cards every year.

If you don't have a credit or if you are one of the millions being turned down for credit due to past poor credit payment history then I urge you to keep on reading this page.

You can't get credit without established credit history and it's hard to develop a credit history when no one will give you credit. The secret is to start small and work your way up.

Gasoline cards are easier to get than Visa or Master Cards, but the problem is that gasoline companies rarely report to credit bureaus. The only time they will report is when you are delinquent and therefore they are not a good place to start.

Many people will try department store cards, but that's not a way to go either. Your chances of getting one are 50/50 and even if you get approved they will start you with a very small credit limit (usually $500.00) which is not good enough for mortgage lenders.


Re-established credit for a minimum of one year means that you must have a loan or a credit card with a minimum credit limit of $500 and up to $10,000.

There are number of ways for you to build credit, but before you get started you'll need to obtain a copy of your Credit Report.

How can you re-establish your credit if you don't know where you stand in first place?

Once you have your credit report check it for unpaid collections. One of the best ways to get your credit rating headed in the right direction is to begin with paying off your bad debts.

You can obtain a free copy of your credit report simply by contacting Equifax National Customer Care Centre at 1-877-227-8800, Trans Union at 1-866-525-0265 or click here to purchase it online for $14.50 from Equifax and read it instantly.

Now that you paid off your bad debt you are ready to start re-establishing it. You could try to take out a new loan. This is the more traditional way to build your credit. The problem is that bankers will be reluctant to help you. You will need to go from a bank to bank or visit few credit unions until you find an open minded manager.

Once you find one, take out a small loan, open a savings account there and leave the money in the savings account. Then simply set up a pre-authorized payment plan and have the banker to withdraw the payments automatically from your new savings account.

This is a win-win and foolproof strategy, but it requires a little bit of legwork.

You can also ask your friend or family for help. I am not a big fan of this strategy, but if they would be willing to add you to their existing credit card then why not? Just make sure that the credit card company will report the payment history to your credit file. Since not all credit card companies will do this, you could be wasting your time if you don't check with them first.

You will need to use this joint credit card for your own purchases and that provides increased risk to your friend or relative.

You are also at risk. You have no control over your friend or relative activities. If they rack up debt - you are liable and if they don't make the payments - your credit will suffer even further!

The best way to re-establish your credit is with a secured credit card.

A secured credit card is a product where the security deposit you provide is equal to the credit limit of your credit card. Your deposit will be held in an interest bearing account with interest and paid to you annually on the anniversary of the opening of the security deposit account.

You are required to make regular payments to your account over and above the security deposit amount because this isn't the same as a "pre-paid" card - it is a regular credit card.

You get to set your own credit limit because your credit limit is equal to your security deposit. The minimum deposit amount is usually $500 but you can deposit up to $10,000. So the decision is up to you.

If you have an outstanding judgment against you, you may still qualify. In this case, you are required to submit third party funds. You will also be required to provide written documentation confirming that the funds you are providing are not your own. This mitigates the risk of claims on your deposit from other creditors. Simply provide written documentation confirming that the funds you are depositing are not your own.

Your security deposit is held for as long as you maintain your account. If you decide to cancel it, your deposit will be returned to you with interest, after all outstanding purchases have cleared and the balance owing is paid in full.

There are two secured credit cards and I highly recommend that you apply for both of them if you want to improve your credit faster!