Manage your credit is one of the most important things we can do. the idea that if you build up a reputation for paying bills and debts on time. you will be better able to borrow money in the future. Our credit is one if the most important aspect of ours personal finances. It enables you to borrow money when you need it. whether for a car, education, home and some other expenses managing credit to the best of your ability is key. learning the exact credit term being offered should influence all borrow.
In accounting term used to increase in value of assets, net-worth and liabilities.


The ability to borrow money, the amount made available as a loan or the ability to purchase good and services without immediate payment or ability to repay the loan or to pay for the goods and services in future.

Meaning of credit card
The credit comes from the Latin word cred-ere which means " To believe"
A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it doesn't remove money from the users account after every transaction. Credit card are a convenient substitute for cash or check and an essential component of electric commerce and internet commerce.

How to obtain credit as a new comer to Canada

As a newcomer to Canada. It is important for you to understand how credit works and to build a good credit rating. The first step is to start building your credit history as soon as possible. It is possible to obtain credit and careful targeting can reap rewards in starting a credit history.

Secured credit card.
Auto loan.
specialist loan(e.g cit i financial).
purchasing a cell phone and service contract.
Hire purchase.

Type of credit cards
Bank credit cards( visa card,master card etc.)
Travel and entertainment credit cards( diner's club)
Retail credit cards( walmart, president choice, old navy,safe way )


Improving your credit score

Pay bills on time.
Get current and stay current.
Don't open a lot of new account too rapidly.
Correct mistakes.
Shop for loan rates within a focused period of time.
Keep balances low on revolving credit.
pay off debt.
Check your credit report.
What is credit history

your credit history is one of the factors that a financial institution will consider when you apply for a credit card, loan, line of credit, or mortgage. Your credit history is information on your ability to pay back money you have borrowed. A good credit history will show that an individual was able to repay money on time. Missed or late payment will result in a bed credit history, making if borrowed money in the future.

The advantages of credit card
Increase purchasing power.
Establish credit.
Raises standard of living.
Emergency funds.
Convenient and fast.
safer than carrying cash.
Returns are easy.
Deferred billing.
consumer protection.

The disadvantages of credit card

credit purchase cost more ( 1% merchant fee )
Interest charges.
future income is committed.
the longer you are committed, the more you pay.
Over spending.
poor credit score and bankruptcy.
Fraud and identity theft.

Line of credit
One of the major benefits of credit line is the fact that they have lower interest rate compared to most credit cards. using line of credit is very convenient and in effect is no difference the using your checking account. you can write cheque, use online banking. telephone banking, and acces the funds with your bank card in most cases. another great benefit is that you can be flexible repaying your loan.

What to do if your identity has been stolen

Contact the three major credit bureaus (Equifax, Trans union and Experian)
Close account.
Contact all creditors involves.
File a police report.
Keep a record of your contact.

How to avoid identity theft

Social insurance number.
Name, Date of birth, mother maiden name, password and Pin.
Monitor your credit report.
Don't give out personal information to unknown persons or companies.
Protect your credit and debit cards.
Protect your mailbox and wallet.
Notify your bank when you change your address or phone number.


Most often credit cards can provide convenience but they can also land you in debt through unwise choices of through no fault of your own, such as an emergency. In order to overcome the risks of credit card use avoid accumulating too many and pay the debt off
on time, read term, and conditions carefully and take measure to avoid fraud.