Achieving Financial Goals
Credit can be a very valuable tool if used wisely. It can assist in attaining many personal goals earlier in life, and when used for such things as a house purchase, renovations, or to make investments, credit can contribute to building assets and ultimately to achieving your financial goals.

Debt Load
Normally no more than 35% of gross income should be used to repay debts including credit card balances, loans and mortgages. Doing your own calculation before you apply for credit will tell you where you stand, but remember, these percentages are only a general guideline. What's really important is that you're comfortable with the level of debt you assume and that you feel confident you'll be able to make all your payments.

In Control
Once credit is part of your financial plan it is important to keep it under control. That means such things as understanding how much credit you have outstanding, what are your minimum monthly payments and you are using the right credit products. Here are some guidelines to follow to help you stay in control of your financial situation:

Make a budget and follow it. Make sure you have a positive cash flow.
Don't make on-the-spot purchases. Always ask yourself: If I were paying cash would I make the purchase?
Always read and understand loan agreements before you sign
Be cautious if asked to co-sign a loan. If you agree to co-sign a loan to help a friend or relative qualify for credit, remember that you are taking responsibility to pay the debt.
Know how much it is going to cost to borrow. Are you using the right credit product for your purchases? Look for ways to use lower cost credit facilities.
Keep a record of all your credit purchases. Check purchases against your credit card/loan statements to maintain a running total of your obligations.

Maintaining a Good Credit History
When you borrow money, you build a credit history that is on file at a credit bureau. With your permission, lenders may view your credit file which shows your repayment record when you apply for any type of credit facility. Your repayment record is one of the criteria lenders look at when making a lending decision.

If you wish to check your credit history, you can ask to see your credit file at the credit bureau. If it contains any incorrect information, you will have an opportunity to set the record straight. To ensure that your credit history stays in good shape make your payments on time. Missed or late payments are reported to the credit bureau. If you can't make a payment call your lender immediately so that you can make interim arrangements.