Understanding Canada's Financial System

Learning how banking and credit work is a key step to managing your money and building your new life in Canada.

Choosing Your Bank Accounts

Most banks offer two main types of accounts to manage your daily money. It is a good idea to open both.

• Chequing Account: For everyday use like paying bills, using your debit card, and receiving your salary. 💳
• Savings Account: To set money aside for goals or emergencies. This account earns a small amount of interest. 💰

You can open these accounts by visiting a bank branch with your personal identification, like your passport and immigration documents.

Building Your Credit Score

A credit score is a number that shows lenders how reliably you pay back borrowed money. A good score makes it easier to get loans for a car, a mortgage for a home, or even a mobile phone plan. Your credit history starts when you first borrow money or get a credit card.

How to Use Credit Wisely

Building good credit takes time. Here are the steps to follow. ➡️

1. Get a credit card. A credit card is a common first step. You can also consider a "secured" credit card if you have no credit history yet.

2. Pay your bills on time. Always pay at least the minimum amount due before the deadline each month. Paying the full balance is the best way to avoid interest charges. ✅

3. Keep your credit balance low. Try not to use more than 30% of your total available credit. For example, if your limit is $1,000, aim to keep your balance below $300.

4. Use credit for planned purchases. Use your card for small, regular purchases that you can pay off quickly. This shows you are a responsible borrower.