How to build credit with a Home Trust Secured Visa card

It happens to many of us from time to time. Either we need to build our credit, or even rebuild it. Well, the good news is there is a card on the market that can help you do just that. 

With this card, you put a deposit down to secure a line of financing from Visa. This is ideal for those who need to rebuild credit, perhaps to switch to a new mortgage deal or to get a mortgage in the first place. The card works just like a credit card and can help raise your credit rating as long as your monthly payment is made on time. You can see what all this card entails and apply for it here. 

Unlike a prepaid card, this card does not need reloading once the balance is spent. You can use it anywhere Visa is taken as well. It works just like a normal credit card aside from the fact that you can control your spending limit with the amount of your deposit. 

This brings us to another point. How do you build, or rebuild credit if you need to do so?

To answer this question we first need to ask why would you need to rebuild credit if you already have a home loan? It is easy to understand why potential homebuyers would need to build credit, but for those who already have a mortgage, what is the point? 

Well, to put it simply, as you build equity in your home and work to improve your credit rating, you may be eligible for better mortgage deals and can refinance to save money. So, aside from the Home Trust Secured Visa, how else can you rebuild credit in order to be eligible for a better mortgage product? Below I have listed a few ways you can accomplish this.

Pay off all debts on time – This should be a given but you would be surprised at how many people don’t pay attention to the fact that making not only timely, but above minimum payments can help your credit rapidly improve. A higher credit utilization almost always leads to a decreased credit ranking.

Apply for a mobile phone plan that is not prepaid – Plans that are not prepaid can help boost your credit ranking. Just make sure you pay your bill in full each time every month!

Check your credit score – Checking your credit regularly will help you stay on track when building or rebuilding credit. Equifax offers a free credit score and credit monitoring tools to help you stay on top of your score. This is also a good way to keep an eye out for fraud that can harm your credit ranking. 

Apply for a secured credit card – Well, this was basically the point of this post. Cards like the Home Trust Visa secured can help you build credit quickly. Just be sure to pay off the card each month.

Avoid applying for new loans or too many credit cards – While a secured card can be a good way to build credit, and using cards you already have to make timely payments can help raise your credit score, be wary of applying for too much new credit, even if you think you will be approved for it. Why is this? Well, simply put a hard inquiry on your credit report can damage your credit ranking. Try to avoid applying for new lines of credit that you do not need.

The bottom line

Now that you are armed with advice on how to build or rebuild your credit, you can be on your way to getting a good (or better) mortgage deal. Stay the course and go steady and your hard work will pay off in the end. By rebuilding your credit you will eventually be eligible for better mortgage rates, so don’t give up even when the going gets tough. 

If you are interested in the Home Trust Visa Secured card as a way to build or rebuild credit, simply click here to learn more and apply.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis: 416-224-0114; steve@canadamortgagenews.ca