Everyone has at least one credit card, whether it be to pay for his/her purchases and repay it over time or reimburse payments by installments.
But how you will meet your repayment obligations will affect your credit report and any check on your bank account.
According to a recent study by TD Canada Trust, “the three main options for credit that most Quebeckers have used in the past five years have been credit cards issued by banks (90%), cards of department stores (46%) and mortgages (41%).”
According to the study, credit cards are the credit products most widely used by individuals. There are 25% of requests for this type of products. There is an increase of pre-authorized payments. One reason is that many credit cards provide access to a database of gifts or travel through the points accumulated.
To maximize your income and ensure financial strength here are some tips:
- Paying the balance immediately is the best option;
- Using the balance of your credit card to pay for other expenses is not a long-term solution. You’ll have
to pay very high interest rates and you'll still have to reimburse both debts.
- If you have access to a credit line with an advantageous interest rate, use it rather than use a credit card or a loan at a higher rate.