TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Solved

How to get started on credit score

3 replies
58 views

I have no credit cards and no loans at the moment, part time working a close to minimum paying job, and wanting to start working on my credit. Any recommendations on how I can start? I'm not well educated on how it works, so information on that would be nice as well.

JBJAnswer

Level 3

1. Credit scores are daunting! Totally okay to head scratch with no idea of how to start.

2. One simple step is outlined in this NerdWallet article:

https://www.nerdwallet.com/blog/credit-cards/secured-credit-cards-vs-unsecured-difference/

Specifically from the article, "A secured credit card is backed by a cash deposit you make when you open the account. The deposit is usually equal to your credit limit, so if you deposit $200, you’ll have a $200 limit... Once the initial deposit is paid, secured cards work just like unsecured ones:

You can use them wherever credit cards are accepted, including online
You can build or rebuild your credit by using the card responsibly and paying your balance on time
You incur interest if you carry a balance"

Now, I'm not sure what the minimum balance you can place on a card, and I'm cognizant of money being tight (been there - seriously, nothing is forever beyond, well, that one thing!)... but if $50 is all you've got, and you can place it on a card, start there. It's a good way to begin slowly establishing a credit score.

Remember Rome, and a great credit score, weren't built overnight... but they were both ultimately built. You can do it!

JBJAnswer

Level 3

1. Credit scores are daunting! Totally okay to head scratch with no idea of how to start.

2. One simple step is outlined in this NerdWallet article:

https://www.nerdwallet.com/blog/credit-cards/secured-credit-cards-vs-unsecured-difference/

Specifically from the article, "A secured credit card is backed by a cash deposit you make when you open the account. The deposit is usually equal to your credit limit, so if you deposit $200, you’ll have a $200 limit... Once the initial deposit is paid, secured cards work just like unsecured ones:

You can use them wherever credit cards are accepted, including online
You can build or rebuild your credit by using the card responsibly and paying your balance on time
You incur interest if you carry a balance"

Now, I'm not sure what the minimum balance you can place on a card, and I'm cognizant of money being tight (been there - seriously, nothing is forever beyond, well, that one thing!)... but if $50 is all you've got, and you can place it on a card, start there. It's a good way to begin slowly establishing a credit score.

Remember Rome, and a great credit score, weren't built overnight... but they were both ultimately built. You can do it!

Level 2

Ah, @JBJ , my heart! Nerdwallet? :) I'm kidding... kinda.

@Ana427 - JBJ is right on IMO

We have a great article on Secured Cards on the Mint blog as well if you're looking to do more research on it! https://blog.mint.com/credit/rebuilding-your-credit-score-a-guide-to-secured-credit-cards/