Personal Finance

Towards a Healthier Financial Future

Topic: "Credit Cards"

← Curating the web to find the most interesting and helpful information about your money.

Word of the week

Avalanche Method

With the avalanche debt payoff strategy, you focus on repaying debts based on their interest rates. This method prioritizes interest rates and paying off debt with the highest interest rate first. You move on to the next highest interest rate debt after the first is paid off. This helps you pay less interest over time.

Strategies for Paying Off Debt Faster →

Word of the week

Snowball Method

The snowball repayment method consists of listing all your debt balances and tackling them from smallest to largest depending if the interest rates are the same. This method prioritizes balances as you move on to the larger ones next. This helps build momentum and motivation by settling debts faster.

Explore different strategies for paying off debt faster and how you can utilize our debt payoff calculators →

Infographic of the week

Holiday Survival Guide

The winter holiday shopping season is the most expensive time of year for most households. This year, spending is expected to be even higher due to rising prices. This infographic helps you start planning to shop and save for the 2023 holiday season.

Holiday Survival Guide How to plan and save for the 2023 holiday shopping season →

Word of the week

Creditworthiness

The term "creditworthiness" describes the degree of a lender's trust in a borrower's capacity to return a loan. The borrower's creditworthiness is mostly based on how successfully they have handled their prior financial commitments.

Discover how long it would take to pay down your credit card with our free credit card payoff calculator →

Did you know?

In 1950, Diners Club introduced the first payment system resembling a credit card. This wasn't a real credit card, though. It was a charge card instead, and the cardholder was expected to pay the whole debt each month.

Use our credit card payoff calculator to help you plan for a brighter future →

Word of the week

Credit Limit

The most you can spend with your credit card is determined by your credit limit. When you first receive a credit card, the issuer sets your limit. You can request a decrease or increase.

What Is a Credit Limit? How It's Determined and How to Increase It →

Word of the week

Credit Utilization Ratio

A comparison of your available credit to how much you have actually utilized. A good credit score can be attributed to a low utilization ratio. The ideal target is to use 30% or less of your available credit.

You can view your personal ratio with our Health Check →

Word of the week

FICO

The three-digit FICO Score, or a Beacon Score, determines whether your credit is good or bad. Fair Isaac & Company, also known as FICO, is a US-based business that sells Equifax and TransUnion Canada their unique rating system. When you apply for credit, lenders can quickly and reliably learn details about your finances thanks to the FICO Score.

Getting your credit report and credit score →

Word of the week

Credit

Credit is money that you may borrow from someone (like a bank or credit card company). You must consent to repaying them on a predetermined timeline, typically with interest, by signing an agreement. The four basic types of credit: - Revolving credit - Charge credit - Instalment credit - Service credit Each serves a different purpose and works in a different way.

Learn more about credit and why credit scores are important →

Did you know?

Credit card and auto loan missed payments increased by 19% in the first quarter of 2023, according to Equifax, as Canadians struggled to keep up with rising living expenses and interest rates.

Don’t let credit cards rule your life. Our credit card paydown calculator will help you plan for a brighter future →

Serious Stuff

Why you got into debt, and how to get out "Between massive mortgages, student loans, lines of credit and credit cards, a lot of us are struggling to pay what we owe and stressed about it."

Serious Stuff Podcast: Why you got into debt, and how to get out →

Word of the week

Cost of Borrowing

The total cost for you to borrow money. This includes the principal amount of the loan, interest, fees and any other costs associated with the loan.

Keep track of all your debt and the true cost of borrowing →

Word of the week

Credit Score

"Your credit score is a three-digit number that comes from the information in your credit report. It shows how well you manage credit and how risky it would be for a lender to lend you money. Your credit score is calculated using a formula based on your credit report. Note that you: - get points if you use your credit responsibly - lose points if you have trouble managing your credit Your credit score will change over time as your credit report is updated."

Learn more about your credit score →

Word of the week

Annual Percentage Rate (APR)

APR stands for Annual Percentage Rate. It's the yearly interest rate you pay on a loan or credit card. However, a credit card's advertised APR isn't the true interest rate because it compounds daily.

Learn how to calculate the effective APR to find a credit card's true interest rate →

← Curating the web to find the most interesting and helpful information about your money.