Tips for when and how to build good credit
Debt is often referred to as a four letter word. But debt is important because debt allows us to borrow money and to use that money for a number of effective ways, including funding for post-secondary education, buying a mortgage, or even funding current consumption. However, it’s important to establish a credit history early on.
As early as age eighteen you can apply for a credit card which will start establishing your credit history, but, be careful. When you have that credit card be sure to pay off the full balance if not the minimum amount on a regular basis.
You can set off a pre-authorized chequing account to make sure that every single month the minimum amount or the full amount is paid off. Don’t over extend yourself. Keep a tract of the total amount that you borrow, and how much you owe. Make sure that you borrow responsibly.
At the end of the day, it’s good to sit down with a financial advisor, look at your credit needs, look at which credit cards may give you the best possible rewards and then apply for that card being responsible to pay it off on a regular basis.