Credit score

Credit score (1 min 36 s)

Added on April 21, 2015

Description

How to have a good credit file and what are the repercussions of a bad credit file?

  

Credit score (1 min 36 s)

Added on April 21, 2015 | Desjardins Group

Note: The text in square brackets describes audio and visual content in the video other than the dialogue or narration.

Beatrice got a real shock when she saw that her credit card statement was so high.

She's not sure if she should go see her favourite band on the weekend or pay the credit card balance due before the payment deadline.

Her sister usually gives her good advice when she needs it.

She tells Beatrice that financial institutions think of her credit score like her reputation. If her credit file has a long list of late payments she's going to have a hard time borrowing money later on. A bad credit rating can make life tough if Beatrice wants to buy a car, rent an apartment, or even find a new job down the road.

It can literally be like 7 years of bad luck. A bad credit file would actually stay with her for that long. Her sister tells her that it's actually really easy to have a good rating.

Pay off debts on time, pay bills, only borrow what you can afford and, most importantly, pay at least the minimum monthly credit card balance before the due date.

There is all kind of tools to help. She can get an email letting her know when she's almost at her credit limit or another one reminding her that her payment deadline is coming up.

The best thing for Beatrice to know is never to borrow money unless she thinks she can repay it. Saving money is the best way to show financial institutions that she's responsible.

Beatrice's choice seems a lot easier now. She invited her friends over to listen to their favourite band's new album!