Problems with CREDIT , waht is credit?????

[boss2009]

I am a new immigrant in Canada. I do not know much about Credit.

I have a VISA credit card from TD bank. I have sufficient funds in my savings account also (TD).

First i purchased a bell phone , when i came to know that it was a wrong plan for me, then i returned the phone.
Recently i purchased a ROGERS mobile phone , i did not like the plan so without using it i returned this phone also the next very day. I made the payment by my credit card and when i returned the phone the money was credited to my visa account.

But next day when i went to buy a FIDO phone , i was denied saying my credit was not approved and they asked me to check with Equifax.

Can i know , what went wrong with my credit, i have taken nothing on loan/credit , no question of missing a payment bcoz i have taken nothing on loan , why am i not approved to buy a mobile phone , what can i do to rectify this problem.
Was the problem caused because i repeatedly buyung and returning phones. Or did Rogers play a trick with me and are playing with my credit to harass me ?

If the problem was caused due to my retuning phones , then how can i improve my credit ?What can i do now to improve my situation.
When i went to the Eqifax site , it asks me to pay 25$ to get a credit file report!!

regards

 

[GK]

Having many requests against your credit history record in a short period of time will have a negative effect your score. As they suggested you can only know for sure if you get a copy of your record. Note that you are allowed one free copy per year so there is no reason for you to pay them. Call them directly and you will get it.

 

[nash_arsenal]

read this http://www.fcac.gc.ca/eng/publications/CreditReportScore/ExTransUnionScore-eng.asp

 

[maxvol]

The credit report is free but if you want to know your beacon score you'll have to pay. So all in a nut shell:

Beacon scores are the first thing most mortgage lenders look at when sizing up a borrower. They're a single number that summarizes your credit situation and shows lenders what kind of risk you're likely to be as a borrower.

The name Beacon is actually a brand of credit score issued by Equifax, the largest credit-reporting agency in Canada . Trans Union, another widely used agency, also issues credit scores under a different name.

Credit scores are based on a complex formula. They range from 300 to 900, with 700 being near average. Individual scores can change every month.

A high credit score is about 750 or above. This typically qualifies borrowers for the best possible rates and terms. A low score is below 620. In this case, you might pay a premium interest rate and find it harder to qualify for a mortgage. As of October 15, 2008, 620 will be the absolute minimum credit score for insured mortgages. That means you'll need at least a 620 score to qualify for good rates on mortgages with less than a 20% down payment.

Hope this helps

 

[Leon]

You can get your credit report free but you have to order it by mail and they will not tell you your credit score, only show you what companies you have accounts with. If Fido saw that you have a newly opened and closed account with Bell and again with Rogers, they might have thought you are only playing around and not wanted to deal with you. In the future, you should look into the account plan before you open the account. Then get one account and stick with it and pay your bills. That's how you build credit.

 

[boss2009]

thanks for the information

These things are new to me , back home in India , there is nothing called as credit history

OK , now that i have done a mistake , what do i do to improve my credit.

 

[maxvol]

Start by checking your credit score from equifax

1. Minimize the number of credit cards you carry at any time.

2. Make sure you pay all balances in full if possible and dont skip any payments.

3. Dont give your SIN number to anyone except Banks (only if they ask you) and your Employer, this minimizes identity theft and will safe you lots of time and money in the long run.

4. Make it a habit to check your credit score every year, this way you are on top of things and know where you stand when it comes to institutions lending you money. When you check your own credit (through equifax, transunion etc) its considered a soft hit but if there are lending institutions checking your credit frequently its going to bring down your score. More frequest hits hits more your score goes down.

Good luck