A Newcomer's Guide to Credit Scores in Canada
Credit scores underscore much of Canadian financial health. A good credit score allows you to borrow money for things like mortgages; a bad credit score can bring on higher interest rates and unfavourable loan terms. It’s important to know the ins and outs of credit scores—and building up your own—which can help ensure you’ll be able to participate in Canada’s financial system with the best terms like interest rates. Before we get into it, we’d like to note that while using credit cards can be a good way to build up your credit, it’s extremely important you don’t become over-reliant on them. If you get a credit card, consider using it to pay recurring bills as necessary, not as a free-money-machine, because it’s not that. Do not let your debt add up. Only spend the money you already have. (Product plug, because why not, and also it’s free to order) GO TO MOGOCARD What are Credit Scores?Credit scores, in essence, are risk ratings based on your credit history. These scores are a factor that prospective lenders use to help measure how trustworthy you are with making loan payments. When