Learn How To Build, Use & Re-Establish Credit

Whether you’re just starting out and using your first credit card, or are re-establishing your credit after past difficulties, it’s important to learn how to use credit wisely within your budget. Below are 3 short articles which answer some of the questions we hear most often.

The first article explains the difference between a credit report and a credit score, and lists some tips for what you can do to build or rebuild and “fix” your credit rating in Canada. In the second article we tackle 4 myths about credit cards to make your credit card a flexible friend not foe. The third article is one of our most popular tip lists. Using a credit card doesn’t mean you have to end up facing money problems. Here are 12 tips to help you use a credit card but not end up in debt.

If after reading these 3 short articles you want more information about credit ratings, credit reporting, and using credit wisely, visit the Credit Education section of our educational website, MyMoneyCoach.ca.

1. Credit Score, History & Repayment
All About Credit Reports

While lenders have historically granted credit using the 4 C’s or the 4 pillars of credit, an individual’s credit report has become one of the most importing factors in lending money over the past couple of decades as creditors have relaxed their lending criteria and have introduced new lending models.

A credit report is a summary of how you pay your financial obligations. It contains information based on what you have done in the past. Lenders use it to verify information about you, see your borrowing activity and find out about your repayment history.

2. Credit Cards – Tips to Avoid 4 Costly Mistakes
Consumer Debt

There are millions of active Visa, MasterCard, and American Express credit cards in circulation across Canada. You many even have one or two in your wallet or have them attached to your digital wallets for virtual use. The credit card has become the instrument of choice for many Canadian consumers.

However for some, the costs associated with using their credit card can lead them to a troubled financial future. Understanding the fine print in the cardholder agreement can save money now and offset future difficulties. Here are 4 quick tips for everyone who used a credit card.

3. 12 Tips to Use a Credit Card But Not End Up in Debt
Pay Off Credit Cards – Repayment Plan

Have you just received your first credit card? Are you rebuilding your credit after completing a repayment plan? Maybe you have more credit cards than your wallet can hold? Learning how to use credit cards wisely, as part of an overall budget, will help you not end up in debt.

From shopping strategies to how to use them for specific types of purchases and how to make payments fit your budget, here are 12 tips to help ensure that your credit card is a tool not an obstacle in your personal finances.