How the Bank of Canada’s benchmark rate impacts your finances + MORE Mar 7th

Consumers in Ontario and British Columbia increasingly missed payments on mortgages and credit cards in the fourth quarter of 2023, Equifax Canada said. 

Critical to building a credit history, credit cards are a rite of passage into financial adulthood.

Even if you’re debt-phobic or have heard too many horror stories of people maxing out their cards, you can’t skip this step.

Cindy Marques, certified financial planner and director at Open Access Ltd., had one client in their 30s preparing to buy a home—while completely missing this piece of the puzzle.

“They went to see if they’re eligible for a mortgage, and their (credit) score was non-existent, because they just never had credit cards,” Marques said. “And they thought they were doing themselves a favour—‘I never had debt. So this shouldn’t be a problem.’”

Credit cards, however, are important tools to build credit history and maintain a good credit score, Marques added. Thankfully most of them come with perks too, catering to almost every lifestyle.

Where to get a credit card

Many people default to picking a card from their bank because it’s easier, says Shannon Terrell, a finance writer and spokesperson for NerdWallet Canada…

The Bank of Canada (BoC) held its benchmark interest rate at 5% on March 6, marking the fifth consecutive time it has left the rate unchanged. Economists widely expect the BoC to lower its rate at some point in 2024, as inflation falls and the Canadian economy weakens. However, in its March rate announcement, the BoC said it remains concerned about “the persistence in underlying inflation” and that it “wants to see further and sustained easing in core inflation.” In short, the central bank feels it is too early to cut its benchmark rate.

As the price growth for goods slowed down, Canada’s annual rate of inflation eased to 2.9% in January—down from 3.5% in December 2023. But the BoC said it’s keeping a close eye on growing shelter costs, which include rent (up 8% year-over-year) and mortgage interest costs (up 27% year-over-year), and which are currently the biggest contributor to inflation. The BoC also noted that core inflation remains in the range of 3% to 3.5% (both year-over-year and over three months)…