When you look up credit in the dictionary, you’ll find many positive definitions: recognition; approval; attribution. So why, when we’re talking about money, does it become a bad word?
In a financial sense, credit is simply the ability to borrow money. Unfortunately, many people misuse credit and penalties can be harsh. But there are many benefits to credit if you use it wisely. Credit cards, for example, are convenient and often necessary – think shopping online, reserving a hotel room, or renting a car. Explore these topics to learn more about how to get a better deal when you borrow:
- Do's and dont's to lower your credit costs
- How to profit from credit
Remember: if you use credit wisely, you can build a good credit rating which can help you get a job, lease a car, or rent a place to live. Laugh and learn more about credit by viewing this Funny Money video. Learn more: Read: Your credit rating
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.