Future Start

A credit rating is an evaluation to determine if an individual is consistent at paying back borrowed money. It is based on how well you keep up your bill payments and your credit cards. Companies will check your credit rating before leasing equipment or loaning you any money, to ensure the security of their loan.

You can build your credit rating by spending money (normally on a credit card or borrowing money through the bank), and paying it back as soon as possible. It is important to keep yourself updated on your credit report and make sure to keep good credit score. Equifax (www.equifax.ca) and Transunion (www.transunion.ca) are both credit report agencies. You should only check your credit report every 3 to 5 years because if you check more than that these companies will flag your report file as suspicious and this can go lower your credit score.

If you do not have a good credit rating this may prevent you from moving forward on your path. Some employers are also checking credit ratings before they hire people.