Tips for Students To Help Maintain and Monitor Their Credit Rating

Armen Hareyan's picture

Financial Management and Credit Rating

(NC) - For many young Canadians, financial management is a new fact of life with student loans, a credit card and day-to-day expenses. Managing finances effectively will help you maintain a good credit rating. Your credit rating, which translates into a credit score, plays an important role in obtaining financing. Your credit score is calculated based on a number of aspects within your credit history and is a factor lenders use when assessing your application for credit. Maintaining a good credit rating is important because your credit history is considered when applying for a mortgage, car loan, credit card or other form of consumer credit. When the need to borrow does arise, it is critical that you know the state of your credit rating.

To help you maintain a positive credit rating, Scotiabank offers the following tips:

1. Protect your rating by always paying bills on time, even if it's just the minimum payment.

2. Don't ever over extend yourself. Be realistic about your borrowing needs and your ability to pay back what you have borrowed.


3. Avoid surprises. Review your credit bureau report on a regular basis (e.g. annually) and especially prior to applying for any new financing.

4. Inaccuracies could hurt your credit rating. If you believe your credit report contains errors, contact the lender involved. You can also dispute the information with the credit bureau who will conduct an investigation and report back to you.

5. Information on how to obtain your credit bureau report is available from Equifax Canada at 1-800-465-7166, or TransUnion Canada at 1-866-525-0262,

"It is important that Canadians understand how their credit rating impacts their ability to acquire financing and how important it is to know what their credit rating is," says Paul Lamothe, Senior Vice-President, Retail Lending Services, Scotiabank. "Following these tips can help ensure that when borrowing becomes an appropriate option for your financial plan, you will have access to financing at the lowest possible rates of interest."

Scotiabank wants to help Canadian youth "Find The Money" and become financially better off by finding relevant, practical and insightful solutions to meet their needs for borrowing, saving and investing. To find out more about what Scotiabank has to offer Canadians visit

- News Canada