How to use your credit card responsibly + MORE May 30th

Credit cards are a part of everyday life. They’re a convenient and safe way to pay for your purchases, and they often come with perks and benefits. Plus, when you use a credit card responsibly, you can build up your credit score, which can help you access loans, mortgages or other types of credit—and get preferred terms and rates. However, if you’re a newcomer to Canada or new to credit, you won’t have a Canadian credit history. Using a credit card responsibly is one of the easiest and faster ways to start.

What is a credit score?

A credit score is a three-digit number, usually between 300 and 900, that banks and other lenders use to determine how likely you are to pay back your loans. The higher the number, the more credit-worthy you are to the banks.

Your score is based on information in your Canadian credit history, such as whether you pay for your phone bill and utilities on time and in full each month. The problem is, for newcomers and others without a Canadian credit history, lenders don’t have any information…

Investing

The best GIC rates in Canada for 2024
Find the best GIC rates in Canada. Plus, everything you need to know about how they work.

Find the best rate

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MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

By Keph Senett and Justin Dallaire on May 30, 2024Estimated reading time: 22 minutes

Currently, Canadians can find many GICs with rates in the 4% to 5% range—that’s good compared to a few years ago, but not quite the 6% you could get last fall…