When it comes to personal finance for an individual, debt can be very useful. Debt makes it possible to consider major projects of all kinds, such as buying real estate or a vehicle, going back to school, starting a small business, and so on. Used wisely, debt can even be a lever for accumulating wealth by making it possible to acquire and grow an asset. This is generally the case with a home, for example.
However, as the soaring interest rates of the past few years have reminded us, debt can also become a trap that undermines the financial position of an individual or a household.
Here are five basic facts to know that can help with good credit management.
The following sources were used to prepare this article :
Equifax, “Q4 2023 | Equifax® Canada Market Pulse: Consumer Quarterly Credit Trends”; “What is a Credit Report?”; “How Credit History Impacts Credit Scores”; “What is a Good Credit Score?”; “The Canadian Credit Score Quick Guide.”
Desjardins, “What is a credit report used for?.”
Government of Canada, “Credit report and score basics”; “Improving your credit score.”
Jean Fortin, “Understanding your credit rating.”
MyMoneyCoach, “What is a Credit Score & How is a Credit Score Calculated in Canada?”
SFL Expertise, “Le score de crédit: comment ça marche?”
TransUnion, “What is a credit score?”