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| MASTER YOUR CREDIT RATING | | | Credit is a very practical tool that saves you from worrying about unforeseen circumstances and makes everyday spending easier. But it's important to maintain a good credit rating and limit your debt since credit often comes at a heavy price if it isn't properly managed.You begin to build your credit rating from the time you first obtain credit. A word to the wise: your credit rating will follow you for the rest of your life!Useful tips: - Only buy on credit after assessing your situation, your needs and your ability to pay off your debt.
- Pay your credit card balance in full each month and pay your other bills on time.
- Make sure you don't go into debt with your credit card. If you do, you might be better advised to take out a loan with the Caisse to clear the unpaid balance; you'll pay less interest with a personal loan.
- Don't write cheques if you do not have enough money in your account or your credit history could be damaged.
- Your credit report has a life-span of 7 years, be careful!
- Limit the number of credit cards you have, especially retail store cards which have a much higher interest rate than financial institutions. It will be easier to keep track of your finances.
- Make the highest payments you can manage and always on a regular basis. Missed payments also damage your credit rating.
The following are elements that will lower your credit rating:Late reimbursements; 30/60/90 daysWhen your bills go unpaidWhen you go over your credit limitSeveral different credit requests can lower your credit scoreAccounts that have been assigned to the collection agenciesAll these small acts that may seem unimportant today could come back to haunt you when you apply for a car loan, mortgage or a business start-up loan in the future. Be aware that a few missed payments now could have serious consequences on your future loan application: your financial institution may charge a higher interest rate, require a guarantor or even a refuse to grant the loan.It is easier to start building a good credit rating now than to rebuild it in the future.The Caisse uses two different agencies to evaluate your credit score; Equifax and Transunion. To see your credit report, visit their websites today; www.equifax.ca and www.transunion.ca.
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