D - I never built credit. I failed to get a credit card as an undergrad. Once I graduated with debt, I could not get one.
Now at 41, I still need to develop enough credit to get one.
Getting a line of credit on my bank account is as difficult as obtaining a standard credit card. BMO *may* allow me a secured credit card, which they normally reserve for foreign students. If so, I will be VERY impressed with them!
But experts say establishing a solid credit rating is key to building life-long financial stability and not throwing away money on high interest payments.
Later in life when you’re shopping for a new home, the latest sports car or a loan for a new boat for the cottage, your credit score will be what your lender will red circle when reviewing your application.
Credit, when used responsibly, can help improve that score.
By using the card for his day-to-day purchases and paying the balance fully each month, Sarlo avoids interest charges and increases his ability to borrow more later.
“Realistically, there is no reason to use cash when you could be building up your credit. That’s why I almost never carry any cash around,” he said.
Sarlo says he ensures he never spends more than he can afford to pay off at the end of the month.
“I am using the credit card to my advantage, rather than allowing the credit card company to take advantage of me. I have never had to pay a cent of interest,” he said.
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