Credit can be your friend or your foe. When used to your advantage, you can gain a lot of benefits. Used unwisely can lead to problems and stress.
When managed sensibly, borrowing is a great way to access extra money to pay for things you want or need.
In its simplest terms, borrowing money means entering into a contract where you agree to accept a set amount of money and pay those funds back with agreed terms.
Those terms include details of the repayment, time it will take to repay the funds, payment schedule, and interest you will pay to borrow the money.
Your credit report determines your credit-worthiness and credit history. Credit checks are conducted by lenders when you are looking to obtain credit. They inform the lender of your past performance in meeting your financial obligations. As one step in the process of conducting a credit check, the lender will contact the local credit bureau.
As a consumer, you have the right to know what information is on your file with the credit bureau. It’s a good idea to check it periodically to be sure that this information is correct. You can visit the Equifax Canada website for your personal, accurate information.Visit Equifax Canada
There are many considerations before you borrow money, including how much you can afford to borrow. Although everyone's situation is different, a general rule of thumb is to not extend your borrowing over 40% of your gross monthly income.
Only borrowing what you need, not just as much as you can get, is the best way to ensure you don’t overextend yourself. Establishing a budget will allow you to see the whole picture and make it easier for decision-making and long-term planning.
Get more tips and techniques for smart borrowing with our guide, including:
Let your fingers do the walking or come in to see us.
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