Hi, welcome to Redeem the Commute. I’m Ryan, your host for the Money Course.

Ways to improve your credit rating:

  • Pay your bills on time. Although the payment of your utility bills ― such as phone, cable and electricity ― is not recorded in your credit report, some cellular phone companies may report late payments to the credit-reporting agencies, which could have a negative effect on your credit score.
  • Try to pay your bills in full, by the due date. If you aren’t able to do this, pay at least the required minimum amount shown on your monthly credit card statement.
  • Try to pay your debts as quickly as possible.
  • Don’t go over the credit limit on your credit card. Try to keep your balance well below the limit. The higher your balance, the greater the impact on your credit score.
  • Reduce the number of credit applications you make. If too many potential lenders ask about your credit in a short period of time, this may have a negative effect on your score. However, your score does not change when you ask for information about your own credit report.
  • Make sure you have a credit history. You can build a credit history by using a credit card. You may have a low score if you don’t have any record of owing money and paying it back.
  • Try to re-establish your credit rating by applying for a “secured credit card”. A secured card is a card that you obtain by depositing a sum of money with the credit card issuer. Your credit limit is usually a percentage of the amount you deposit. You can build a credit history by making all of your secured credit card payments on time.

From http://www.fcac-acfc.gc.ca/eng/resources/faqs/answers/Pages/AE261.aspx

Global News says these breakdown as follows:

  • 35% Payment History
  • 30% Utilization
  • 15% History
  • 10% Credit Product Types
  • 10% Inquiry


We’ve looked at one way that people can get into debt i.e. spiraling interest.

You may already be in debt/ have experienced it or know someone who has. Anyone can find themselves in this position.

Question: What are some reasons people may get into debt? Make a list.