Owning a Credit Card is a great idea! Surprised?

Written by Exequiel O. Bertaina, Staff Writer

Some might argue that students should not be allowed to have credit margins. In fact, it’s quite the opposite, as long as they are responsible with their finances.

Why, might you ask?

It’s quite simple; it will help you build a good credit record.

If you don’t have a good credit record, you’ll realize that borrowing large sums of money from a bank to pay tuition fees or buy a car will be quite difficult. It’s very wise to start as soon as possible in building a credit record, because financial planners will want to know if you’re a responsible borrower. There are many other practical reasons to have credit at your disposal, such as for a medical emergency, which may leave you strapped for funds. It could also be that you’d want to buy an item now for less money than it will cost you later.

How do we define a responsible person after all?

If you’re NOT using credit for everyday living expenses, for shopaholic reasons or even to finance a Corvette when a Ford Fiesta is all your budget allows, then you are considered responsible.

If you’re wondering how to figure out your credit score, there are several companies that can give you information. For example, FICO scores range between 300 and 900, and scores of 600 and above are considered very good. Credit scoring is a system used by lenders and others to assess the credit risk of potential borrowers, most often when they apply for credit cards, automobile loans, and home mortgages.

Information about the applicant and his or her credit history is collected from the credit application and the individual’s credit bureau report. Data contained in the credit report is summarized in a credit score, such as the FICO score. The distribution of the scores is based on five categories of data contained in a credit report: payment history, length of credit history, amounts owed, types of credit used, and number of recent applications for credit. However, they do not consider such factors as age, race, colour, religion, nationality, sex, marital status, or employment data.

Based on this information, you might want to consider how it would be possible to improve your credit score. The answer is simple: by managing your debt responsibly.


Establish a credit history as soon as possible. Pay your bills on time, limit the amount of credit you use or have access to, and avoid certain types of credit, such as loans from finance companies. Don’t apply for too much new credit at one time since frequent applications will have a negative impact on your credit score.

Finally, there are several ways of obtaining your credit report in Canada. You can visit the Equifax Canada website at www.equifax.ca or the TransUnion website at www.transunion.ca.  You will notice that both companies charge fees for giving you a credit report.

Let’s hope this article has given you practical knowledge in dealing with your credit accounts. 

ARB Team
Arbitrage Magazine
Business News with BITE.

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