For many Canadians, homeownership represents stability, security, and the chance to build a life for themselves and their families. But the path to homeownership can be challenging, especially for newcomers to Canada or those with little to no credit history. Here at JAAG Properties, we understand these hurdles. That’s why we’re committed to empowering our clients on their journey to homeownership by helping to build a strong credit score.
Building Credit with JAAG
One of the significant advantages of JAAG’s Rent to Home Solution is that it’s specifically designed to help you build credit while saving for a future down payment. Your monthly rent payments for the rent to own property are reported to credit bureaus, which positively contributes to your credit history.
Ways to Build Credit in Canada
Building a strong credit score is an essential step on the path to homeownership. Here are some effective strategies to solidify your credit score on your own:
Establish Your Own Credit Identity
You can’t build your credit without a credit identity. In a lot of families, credit is in the name of one spouse. This means, If the relationship ends, one spouse may be left without a credit identity.
Get a Credit Card
Responsible credit card use is a powerful tool, but you need to manage it wisely. This allows you to demonstrate your ability to handle credit. However, beware of retail credit cards, as their interest rates are usually higher than those charged by the major credit card companies or financial institutions.
Avoid Drawing Cash Advances on Your Cards
Cash advances typically come with significantly higher interest rates and fees than regular purchases. They can also negatively impact your credit utilization rate, as they count towards your overall credit limit. A personal line of credit is a more cost-effective way to access cash when you need it.
Pay Your Bills on Time
Your credit cards, utility bills, and personal loan payments make up 35 percent of your credit score, so this is essential if you want a good credit score. If you’re forgetful, don’t worry. Most banks offer the ability to set up direct bill payments from your bank account. This will help you build your credit rating and avoid high interest charges.
JAAG’s Credit Education and Financial Planning
At JAAG, we understand the importance of financial literacy and responsible credit management. That’s why the JAAG team can connect you with a Certified Financial Planner, who coaches you through monthly budgeting, long-term planning and provides the credit education necessary to help you manage your finances effectively.
Build Your Credit with JAAG Properties
We believe that everyone deserves the opportunity to achieve their dream of homeownership. By combining our Rent-to-Own program with our Credit Education Service and financial planning tools, JAAG Properties empowers you to build a strong credit score and a secure financial future. Contact JAAG today, and let’s get the process started.
