Building credit history

[hbrsid86]

So I did my 'soft landing' back in March and during the week I was there I opened a bank account and got a credit card too (but it's with my friend who lives there). Since then, after the first no fee 6 months, I've transferred the minimum amount to my account to avoid and extra charges.

Maybe I'm trying to be too clever and I don't want this to backfire, but I wanted to know if it would be an issue if I asked my friend there to use my credit card (I trust him like a brother) to make some monthly purchases (less than 30% of course. Maybe even no more than just 10%). The reason is I want to be able to build some credit history before I move there myself permanently by August next year, knowing that to rent a place they look for credit history(?). Would that work out not worth the hassle? And I don't want to do anything illegal of course.

 

[bluffmaster88]

So I did my 'soft landing' back in March and during the week I was there I opened a bank account and got a credit card too (but it's with my friend who lives there). Since then, after the first no fee 6 months, I've transferred the minimum amount to my account to avoid and extra charges.

Maybe I'm trying to be too clever and I don't want this to backfire, but I wanted to know if it would be an issue if I asked my friend there to use my credit card (I trust him like a brother) to make some monthly purchases (less than 30% of course. Maybe even no more than just 10%). The reason is I want to be able to build some credit history before I move there myself permanently by August next year, knowing that to rent a place they look for credit history(?). Would that work out not worth the hassle? And I don't want to do anything illegal of course.

It is illegal to use another person's credit card. You and your friend could land in trouble. Alternatively, you can do online purchases yourself.

 

[hbrsid86]

It is illegal to use another person's credit card. You and your friend could land in trouble. Alternatively, you can do online purchases yourself.

Thanks for heads up about this! Will keep that in mind and see if there's another way that I could make the purchase myself somehow.

 

[steaky]

If you want monthly expenses, you can make online purchases with your credit card. You don't need to ask a friend to use your credit card.

 

[hbrsid86]

If you want monthly expenses, you can make online purchases with your credit card. You don't need to ask a friend to use your credit card.

My issue was that I don't really have anything that I'd want to purchase in Canada yet, and I'm guessing if I use the Canadian credit card here (in UAE) for any purchases it'll cost me more for everything, so that might not be wise either.

 

[steaky]

My issue was that I don't really have anything that I'd want to purchase in Canada yet, and I'm guessing if I use the Canadian credit card here (in UAE) for any purchases it'll cost me more for everything, so that might not be wise either.

Originally you said you want your friend to use it, so now you can ask your friend what he need to purchase and you can make the online purchase for him!

 

[hamgha]

there's no need for it. just wait until you move and don't put yourself in compromising situations

 

[hbrsid86]

So I spoke to another friend already there (he also moved permanently this year in Feb) and he suggested that I do not bother with this either. He said something about having a credit score of 600 at the beginning since I had opened a bank account and had money in it. Not sure of that though but I guess I will wait until I'm there and not take any chances. Thanks guys!

 

[hamgha]

So I spoke to another friend already there (he also moved permanently this year in Feb) and he suggested that I do not bother with this either. He said something about having a credit score of 600 at the beginning since I had opened a bank account and had money in it. Not sure of that though but I guess I will wait until I'm there and not take any chances. Thanks guys!

also not everyone where you'll rent will ask for credit history. we only showed employment and bank statement. fun fact, credit scores are not reflective of financial value here, just of how much you're good at paying money you borrowed back

 

[KRP]

So I did my 'soft landing' back in March and during the week I was there I opened a bank account and got a credit card too (but it's with my friend who lives there). Since then, after the first no fee 6 months, I've transferred the minimum amount to my account to avoid and extra charges.

Maybe I'm trying to be too clever and I don't want this to backfire, but I wanted to know if it would be an issue if I asked my friend there to use my credit card (I trust him like a brother) to make some monthly purchases (less than 30% of course. Maybe even no more than just 10%). The reason is I want to be able to build some credit history before I move there myself permanently by August next year, knowing that to rent a place they look for credit history(?). Would that work out not worth the hassle? And I don't want to do anything illegal of course.

No need for credit history if your friend will sign your rental contract papers as guarantor.

 

[canuck78]

Would also be very careful. You opening all these credit cards and a bank account have created financial ties to Canada and could make you a resident for tax purposes. I would call CRA and ask them to determine if all these accounts have made you a resident for tax purposes. In general one should not create ties to Canada until you are moving to Canada for the potential tax implications.

 

[hbrsid86]

Would also be very careful. You opening all these credit cards and a bank account have created financial ties to Canada and could make you a resident for tax purposes. I would call CRA and ask them to determine if all these accounts have made you a resident for tax purposes. In general one should not create ties to Canada until you are moving to Canada for the potential tax implications.

Thank you, I will check with them. While my bank did send some Tax Residency Self-Certification form to my friend's place, I emailed to ask if I was supposed to fill it out (they said I have to mail it so I couldn't even do it online) but I was told at least by the person at the bank who helped me open my account that since the bank account and the credit card was the only ties I had, I should be fine. I created the account to help me move my money there before I permanently moved. But now that you said this, I will call CRA to confirm.

 

[hbrsid86]

No need for credit history if your friend will sign your rental contract papers as guarantor.

Ah, I didn't know my friend could act as a guarantor so that is definitely good to know. Thanks!

 

[hamgha]

Ah, I didn't know my friend could act as a guarantor so that is definitely good to know. Thanks!

I think I mentioned it earlier, out landlord accepted our statement as proof of being able to pay. I dont think they care about your credit history as much as you having outstanding debts.