Basically what the title says.
I had a credit card when I was young and was stupid. Essentially, a phone bill went to collections, and now my credit is shot. I’m older now and want a mortgage in the future but can’t get a credit card.
I have no debts other than student loans and work a full-time job.
I am located in Alberta, Canada.
Any tips?
You will generally be looking at a secured credit card if you need to rebuild your credit. I’m not familiar with Canadian lenders, but I believe Capital One has a presence there.
You can read around about other things you can do to improve your credit, like ensuring your credit reports are accurate and pledge loans.
@Renny
I have been told that when applying for a mortgage, if you have a secured credit card, they do not take that into account and you will be denied.
Fallon said:
@Renny
I have been told that when applying for a mortgage, if you have a secured credit card, they do not take that into account and you will be denied.
If that’s true, a secured credit card is still a stepping stone & you shouldn’t dismiss it.
Or you can go the no credit route and request manual underwriting with lenders who allow it. You won’t need credit at all, just bank statements and a history of payments for rent, utilities, and other stuff like that. It takes a little longer, but no credit is needed at all.
I’d start with your local bank since you have an established banking history. They may be more willing to give you a credit card.
Chase has the Freedom Rise card that is fairly easy to get approved for. Try to apply in branch and open a checking account with $250 to increase your odds of approval.
Try all the pre-approval tools from the banks. If all else fails, try for a secured card like others mentioned.
If you still can’t get approved, the last resort would be a charge card from Fizz or Step Mobile. They are basically secured credit cards that act like debit cards: you deposit money into the card and you can only spend how much you have in the card.