Some tips for building your credit report

Some tips for building your credit report

 
Developing healthy payment and credit usage habits can ensure the success of some of your future endeavors. While credit can be helpful in the event of the unexpected, it shouldn't become the primary means of paying for your daily expenses. If you don't have the cash to buy what you want or need and you're buying on credit, make sure you pay off your debts on time.

Living on credit by accumulating cards and loans can be very expensive. Indeed, this lifestyle could affect your borrowing capacity when a life project, such as buying a house, comes your way. It is therefore best to adopt good behavior immediately and to minimize the use of your credit.

Protect your credit report

It is important to be aware that all of your past financial actions will influence your financial institution's decision whether or not to grant you financing. A small gesture today can have an impact on obtaining a loan for a car in the future or the funds needed to start a business. In addition, many homeowners now check credit scores before granting a rental.

Your credit history tells the lender if they can trust you. This personal history, commonly known as a "credit report," contains information about meeting deadlines when you repay your loans (loans and credit cards), as well as a history of bankruptcy. A few deviations on your part could therefore result, in a future loan application, in a higher interest rate, the obligation to have an endorser or, even worse, a refusal.

Remember, it's easier to build a good credit history than it is to restore it.

Some tips for taking charge of your credit

Here are some tips for building and maintaining a good credit report:

Limit the number of your credit cards and pay off the total balance each month. Credit limits positively influence your credit report when all balances are at 0, so you don't have to ask for more than necessary.
Sign up for a systematic savings program so you have the funds to cover unforeseen expenses.
Pay your bills each month (electricity, telephone, cable, etc.) before the due date.
Only accept credit offers that suit your needs. Watch out for promotions: Some cards offer discounts on interest rates for a certain period or even freebies, but in the long run they carry quite high interest rates.
If the repayment terms established for one or more of your loans are too cumbersome to manage, contact your financial institution before you find yourself in default.
The budget: a tool that allows you to stay in control!

A budget helps you manage your affairs effectively and clearly identify your needs and your ability to repay. It allows you to get the most out of your money. By following it rigorously, you will better manage your expenses and even make room for savings! Discover the personal assessment tool (PDF, 613 KB) Opens in a new window. to paint your financial picture.

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