Missing Out On Money?

What could you be missing out on by having no credit or a poor score?

Paying with cash is great to keep you out of debt. But there’s some purchases that most people just can’t fully save up for like a house or car. When it’s time to buy these big ticket items, you’ll want a solid credit report and a high credit score.

Most people don’t realize that by having some debt and being responsible with it for months or years before they’ll need that big loan or mortgage, they'll be much more likely to be approved when the time comes.

Here’s a list of payments that would appear on your credit report and by paying them on time each and every month, you’ll be boosting your score:

  • Credit card payments
  • Loan payments
  • Line of credit payments
  • Car loan and student loan payments
  • Most mortgage payments
  • Some cell phone provider payments

These bills will not count on your credit report unless you’ve defaulted on them and they’ve gone into collections:

  • Hydro, gas, telephone and cable payments
  • Some cell phone provider payments
  • Payments to a supplementary credit card (where you have a credit card but aren’t the card authority)
  • Payments used with your debit card

By not having an established credit history, you may be declined just when you need it. Or, pay more for the interest rate, meaning less money in your pocket.

To watch my video on this topic, view it here.

To learn more about what’s on your credit report, how to improve and check your credit score, check out my new book, Talk Money to Me: Save Well, Spend Some, and Feel Good About Your Money, in stores December 17th and available at Amazon and Chapters for pre-order now.

As the Consumer Advocate for FP Canada, I know that financial literacy is paramount to your well-being. Equally important to your long-term success is working with a qualified professional. To find a CERTIFIED FINANCIAL PLANNER® professional in your area that will help guide you on all matters of money, check out this Find Your Planner tool.

FP Canada is a national professional body working in the public interest (formerly known as the Financial Planning Standards Council). FP Canada is dedicated to fostering better financial health for Canadians by certifying professional financial planners and leading the advancement of professional financial planning in Canada.

For more on financial planning and how to get started, watch What is a financial planner? and What is a financial plan?

I've written a new book to help you feel good about money.