Learning About Credit
Discover how credit works and what to watch out for.

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 or "fix" your credit rating in Canada.

In the second article we tackle 4 myths about credit cards. Is your credit card your flexible friend or foe?

The third article is one of our most popular tip lists. Using a credit card doesn't mean you have to end up in debt that you can't afford to pay back. Here are 12 tips to help you use a credit card but not end up in debt.

To Learn More

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

  1. Credit Score, History & Repayment - Credit Report

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.

  1. Consumer Debt - Credit Cards | Flexible Friend or Foe?

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, as 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. The first rule of credit card use – check your cardholder agreement for details.

  1. 12 Tips to Use a Credit Card but Not End Up in Debt | Pay Off Credit Card - 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.  

Tip #1 - Shop With a Plan

Save up for purchases in your savings account first and don’t “just go shopping” with your credit card. If you don’t have it with you, you won’t be tempted to impulse spend. Use the credit card to make planned purchases and then pay them off as soon as the bill arrives. You’ll have the money saved, so it’ll be easy to do!

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