Credit scores are Canadian’s financial identity - it is the three digit number that informs future lenders, creditors, or employers how financially responsible an individual is. This score will dictate a person’s ability to rent an apartment, buy their own home or vehicle, and qualify for loans at reasonable interest rates. Despite being such a pivotal part of determining Canadian’s quality of life, many are unaware of their score!
So what can you do to bulk up your credit score and ensure that there won’t be hiccups or massive interest rates when you need to take out a loan?
Most consumers typically have both a credit card and a debit card. Of course, the biggest difference between the two is that a debit card will immediately take money out of your bank account when used, unlike a credit card, which will pay for the purchase and later add the amount of the transaction to your monthly statement.
But are there any other differences between the two?
It turns out that there are some major differences that you may not be aware of. Also, it’s important to note that both debit and credit cards have their own distinct advantages and disadvantages.
From the moment you apply for that first credit card or loan and your credit history commences, financial institutes and lenders will eagerly track your credit score. This score impacts almost every facet of Canadian’s lives - it determines your ability to rent an apartment, buy your own home or vehicle, and qualify for loans at reasonable interest rates. In certain circumstances it can even determine future employment opportunities!
Despite the massive ramifications of this three digit number, many Canadians are completely unaware of their credit score.