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While credit is not necessary, even for things like buying a home, credit is important to some people and businesses. Home loan interest rates are lower for those with a good job, good rental history, and good credit. While you can get a loan at an X % interest rate without credit, you can often get a loan at X-2 with better credit.
One easy way to get credit is to INTELLIGENTLY use a credit card. I say intelligently since many college age Americans (and in your case Canadians) often get really finiancially screwed with credit cards.
Whatever you put on a credit card has to be paid off BEFORE any interest is due. And no payment can ever be late. Mess this up and you can get into the horrible debt people talk about.
One easy way to build credit is as follows:
* Get a checking/savings account at a good bank (or credit union) with online banking.
* Get a credit card (Visa or Mastercard) from a national bank that has a good online credit card payment system.
* Use your credit card for day to day purchases, like groceries or new shoes.
* No less frequently than weekly, completely pay off the credit card online via the bank account.
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"It's a long story," says I, and let him up.
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