How important is it to have a good credit rating?
Debbie from Calgary emailed us at expert@sweetspot.ca, and RBC financial expert Melissa Jarman, answered;
If you're interested in getting a mortgage, loan or credit card, it's really important that you have and maintain a good credit rating.
A credit rating is one of the measures that financial institutions use in order to qualify you for credit -- whether that's a mortgage, a credit line or a credit card. It provides an overview of your payment history of past credit facilities and how you've managed your debt up until this point in time.
Managing your credit has to be a personal priority. In order to qualify for loans going forward, you need to make sure that on a monthly basis you're making your payments on time. If you can't make the full payments make at least the minimum payments required and don't miss your payments.
Be cautious when applying for credit and use it wisely. Before borrowing, prepare a budget to help you understand how much you can afford to repay so that you don’t get in over your head.
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Melissa Jarman is Manager, Acquisition for Cards and Payment Solutions, RBC Royal Bank and has more than 15 years experience in the Financial Services industry. She obtained her first credit card at the age of 19 and has been an avid user ever since. Stay tuned to find out how you can get more from your card.