I need a credit card for obvious reasons (book flights, reservations, etc...). My credit was ruined 2 years ago when i first got here. I saw some credit cards for bad credit but a 34.99% interest rate seems high? I don't intend on carrying a balance so it shouldn't really affect me. But I never heard of Affirm Financial. Anyone else deal with them?
What To Do If I Have Bad Credit
- Thread starter mfsmith
- Start date
Wrong. You do NOT need a cc!
There are many people out there living w/o a cc, I did for most of my life, especially the first years in Canada. It works, you just need to get used to.
Other than that, what happened? You said your credit was ruined... how? You also said 2 years ago...what happened since then?
If it's on you you need to change your behavior. If it's on someone else you have to make sure no one gets "credit" in your name. You have to build up your credit rating again - you should talk to a specialist at your bank. If you're in deep debt you'll need to fix that by making a payment plan that makes sense.
Don't get a cc with 34.99%, you already know that's crap and chances are you're getting yourself in a situation which is way worse than now.
Get it all fixed and then maybe get a new cc, but until you're on the safe side don't do it - you don't need one! But hey, you can fool yourself if you want - free contry!
Good luck!
There are many people out there living w/o a cc, I did for most of my life, especially the first years in Canada. It works, you just need to get used to.
Other than that, what happened? You said your credit was ruined... how? You also said 2 years ago...what happened since then?
If it's on you you need to change your behavior. If it's on someone else you have to make sure no one gets "credit" in your name. You have to build up your credit rating again - you should talk to a specialist at your bank. If you're in deep debt you'll need to fix that by making a payment plan that makes sense.
Don't get a cc with 34.99%, you already know that's crap and chances are you're getting yourself in a situation which is way worse than now.
Get it all fixed and then maybe get a new cc, but until you're on the safe side don't do it - you don't need one! But hey, you can fool yourself if you want - free contry!
Good luck!
It's very difficult to live today without a credit card, not for the sake of the funds but merely for convenience. Without a credit card, you can't purchase anything online, use services like Uber, check into many hotels, etc.Tri-Cities said:
My advice would be to speak with your bank. They would be happy to provide you with a secured credit card against a deposit that you would maintain with them. The rates would be lower and this would allow you to rebuild your credit history.
If you have a bad credit score, you're likely to attract high interest rates, regardless the lender. Have you checked with your bank? It is wiser to obtain a credit card from your bank, or request for an increase in the limit, than signing up with multiple financing companies. Keep in mind the more cards you get the higher the chances your rating will get worse or stay low.mfsmith said:
To fix your situation, its critical you understand what led to it, otherwise, even with a new card, it'll remain the same.
(1) Pay ALL your bills on time - this contributes to 30% of your credit rating, and yes, it includes credit card bills. Avoid "late" or "missed" payments.
(2) Manage your credit well - it is advisable not to spend more than 30% of your credit limit in a billing cycle. Spending closer to your card limit is an indication: you have no money, and therefore less creditworthy - this leads to the drop in your score, and rise in interest rates for any credit offers or applications - lenders see you as high risk.
(3) Maintain a good mix of credit - this is usually dependent on an individual's needs. But it helps to have an ordinary credit card, a store/retailer issued card (e.g. Amazon, Old Navy etc), auto/student loan etc. I emphasize; this is on a need basis, I am not saying sign up for a car loan; when you don't need a car.
(4) The length of your history - the longer your history the better. This is really outside one's control. If you have been in the country for only a year, there is nothing you can do about that.
Steps 1-3 if integrated into your lifestyle will play a key role in improving your credit. I am not sure how many cards you have and how much you owe, but you may want to consider consolidating the debt, if you have multiple cards. Basically, move all the debt to one card, preferably one with the lowest rate - you'll need to talk to the card provider for new terms and conditions, and guidance.
With all that said, you should consider using your debit card for online transactions, at least those you can afford. Whereas retailers and service providers use the term "credit card", a debit card can be used as well - it's what i use. By doing so, you're able to spend within your means, and keep your credit card monthly expenditure within a range that won't negatively impact your score/rating.
I'm sorry if this sounds judgmental (it's not the intention), but you'll want to take a good look at your lifestyle and make sure it fits your means. Most people use credit cards because they have no money - its dangerous to spend more than you earn - you don't want to use debt to pay debt.
All the best.
You have really good advice and agree with most of it. I have only one issue primarily with using debit cards for online payments. If your card ends up stolen in a low-secured website, it will be a nightmare to restore your funds. In fact even a mischarge on your account takes 2-3 days to return funds back. Till then, you'll be out of the cash that was taken out of your account. The main issue and benefit with using debit cards is that it's your own money and not Visa's or Mastercard's. They get extremely protective with their own money and will reverse charges back in case of fraud.next2015 said:
A secured credit card with your bank offers the best of both without messing with the funds on your account.
@eggsterminate, I agree with you on that. However, I don't understand why anyone would go shopping on a low-security site... It's like walking into a fire with full knowledge you're going to get burned. Personally, I restrict my online shopping to known and trusted retailers e.g Amazon, Macy's, Walmart etc. I know there's small retailers out there and they offer super low prices. I do want to save some money, but I've learnt to draw a line. Sometimes a $2 saving comes with more pain. My advice - stick to trusted retailers. If you want to save money look out for discount deals, coupons etc.
Got my file number but wp is refused. Pls help.
Hi after i get my wp refusal i called cic and ask them abiut my application and he told me that i need to leave canada. But i told him that i have my pr application he transferred me to ircc cs then told him all the details and i asked him if i can still process my papers in my country he said yes and i can take my medical as well in my country. I contacted the immigration consultant told her everything as well and she said that I don't need to worry because my pr is already pre-approved since i got my file number i can continue the processing in my country she even have a clients/workers the same situation that i have. And they are now back here in Canada.
Please tell me if this is really possible. I am so worried. Can't sleep. And leaving canada by next week. And is it okay to stay until july 22 here i got my wp refusal july 8 because i need to fixed all my things and my company will booked me.
Hi after i get my wp refusal i called cic and ask them abiut my application and he told me that i need to leave canada. But i told him that i have my pr application he transferred me to ircc cs then told him all the details and i asked him if i can still process my papers in my country he said yes and i can take my medical as well in my country. I contacted the immigration consultant told her everything as well and she said that I don't need to worry because my pr is already pre-approved since i got my file number i can continue the processing in my country she even have a clients/workers the same situation that i have. And they are now back here in Canada.
Please tell me if this is really possible. I am so worried. Can't sleep. And leaving canada by next week. And is it okay to stay until july 22 here i got my wp refusal july 8 because i need to fixed all my things and my company will booked me.
@ELC14
This thread is about bad credit you might wanna open up your own thread and discuss your issue!?
This thread is about bad credit you might wanna open up your own thread and discuss your issue!?
It is possible to survive without one, but it can make things hard depending upon what you want to do. For day to day survival it's perfectly possible though.
Car hire and hotels are often places that want a credit card, though most can take (sometimes large) deposits off a debit card as an interim measure. Credit cards offer much better protection online booking things like flights etc... as well, and some offer free insurance of sorts etc.. There are benefits if you manage it right.
Even with the most careful people, things can happen. I'm really really careful but I've had both an unauthorized hit on a card in the past and even a direct debit taken from an account that never had any debits setup. Unfortunately in this day and age constant vigilance is key.
I'd go speak to a few banks, explain you have bad credit and ask for a secured card as others have also suggested. So if you want a $500 limit you put $500 into an account that you can't touch, that way there's no risk to the bank because they already have the money. This is what I did with no credit rating - and while I understand that is different I can see it working the same.
Just to say, I had no issue hitting very close to my limit when it was low several times, but that said since the limit went up and I've been hitting much lower % of total I've gotten several offers of increases very quickly. I was able to raise my limit to include more than I had secured unsecured on top of what was after just over a year without problems (ie: 60% of the card was unsecured). With a bad history it will likely take longer though, but with time you can recover.
Good luck.
Car hire and hotels are often places that want a credit card, though most can take (sometimes large) deposits off a debit card as an interim measure. Credit cards offer much better protection online booking things like flights etc... as well, and some offer free insurance of sorts etc.. There are benefits if you manage it right.
Even with the most careful people, things can happen. I'm really really careful but I've had both an unauthorized hit on a card in the past and even a direct debit taken from an account that never had any debits setup. Unfortunately in this day and age constant vigilance is key.
I'd go speak to a few banks, explain you have bad credit and ask for a secured card as others have also suggested. So if you want a $500 limit you put $500 into an account that you can't touch, that way there's no risk to the bank because they already have the money. This is what I did with no credit rating - and while I understand that is different I can see it working the same.
Just to say, I had no issue hitting very close to my limit when it was low several times, but that said since the limit went up and I've been hitting much lower % of total I've gotten several offers of increases very quickly. I was able to raise my limit to include more than I had secured unsecured on top of what was after just over a year without problems (ie: 60% of the card was unsecured). With a bad history it will likely take longer though, but with time you can recover.
Good luck.
I agree with you there but even trustworthy websites/ stores have data breaches.next2015 said:
Target had a data breach just about 2 years ago and people's credit and debit information was stolen. : http://www.wsj.com/articles/target-reaches-settlement-with-visa-over-2013-data-breach-1439912013
Home depot too: http://www.reuters.com/article/us-home-depot-breach-settlement-idUSKCN0WA24Z
Neither Target nor Home Depot are small and I am quite sure you would have shopped there at least once.
As someone who works in the tech industry, I feel a lot more secure using a credit card for small payments, since it's not my money and Visa, MasterCard and Amex have built in safety.
A bank really has nothing to lose from me as a consumer, having my account stolen from. If someone gets into your debit card, they can drain you dry and you won't have cash until the bank reverses it back for you. Credit card with their grace period and the fact the company's money is on the line usually elicits a faster response.
The only caveat with credit cards, is spending beneath your means and paying back in full within the grace period. Your dollar will go further too in terms of benefits.
Indeed, the big retailers are not immune to data breaches, but the risk is much lower. I was one of those that were concerned about the last breach at target, until I got the detailseggsterminate said:
.I hope the original poster returns to give an update on his/her situation...