Question

financial impact of credit card on international students in canada

Answer 1

Credit building might not seem a top priority when you arrive in the US first, but the faster you start credit building the better. In the long run, in order to show that you are a good investor, you will need credit history. Lenders will need reassurance that the money you owe on time each month will be paid back, and a high credit score will provide them with the reassurance they need. Without credit history, you won't be able to do such things such as buying a house, buying a car, having good home and auto insurance rates, renting an apartment, receiving low interest rates on loans, etc.

There are many reasons you may need to obtain credit in the future, which may not seem important now, but it would be difficult to provide proof of your financial record if appropriate without credit history. Without a decent credit background when applying for a loan or mortgage, you will probably either have to pay an extra fee in advance to receive what you're trying to get, or you'll need someone to co-sign with you (usually your co-signer must be a resident of the United States). While having a co-signer will help you get the money, it can also make the lending process more difficult and allows you to rely on the other people involved.

For fact, if you are careful about your finances, you miss out by not setting up a credit history that represents a good financial behaviour. You can think of credit building as your resume to lenders. Just as a strong resume will appeal to an employer, a strong credit history will appeal to a lender.

Although it's necessary to have a credit card during your U.S. studies, it can be hard to find a company that will allow you to open a credit card as a new international student, particularly if you don't have a social security number or credit history. However, companies like Deserve can be found which will allow you to open a credit card as an international student.