When you arrive in Canada, there are many reasons you might want to use credit: you might need furniture and other everyday essentials right away, and there’s always the chance that an unexpected cost might come up. You might also need to book things online—like plane tickets, hotel rooms or rental cars—and credit cards often come with cashback rewards and travel insurance. Or maybe you just want to group all of your purchases together and only worry about one bill at the end of the month.

Moderation and good judgment are important if you decide to use credit, because the choices you make can have positive and negative consequences. Here’s a brief explanation of what goes into your credit report in Canada, and how it’s used.

What is a credit report?

What information is included in a credit report?

• Your credit history

• How much you’ve borrowed

• Your ability to meet your financial commitments

• If you have been late on any payments

• How good you have been at paying off debt

• Etc.

Any lender can use your report to see if you’ll be able to pay back your debts.

Credit scores

Your credit report also contains a credit score. This is a rating based on many factors, including:

• The type of credit you use

• Your payment habits

• How many times you’ve applied for credit

• Your total debt

• The number of times your credit report has been checked

The advantage of having a good credit score

A good credit score shows financial institutions that you‘re trustworthy. Later, when you want to borrow a large amount of money (to buy a car or house, for example), a good credit score will work in your favour.

That’s why it’s important to adopt responsible habits and make good decisions when it comes to money. It can help improve your score!

Learn more

• Your credit score

• Your credit report

Learn more to get ready for life in Canada : desjardins.com/StudyingInCanada