Your credit score affects everything – mortgage rates, car loans, sometimes even job applications. I learned this when I applied for my first credit card at 19 and got rejected because I had no credit history. No credit is almost as bad as bad credit. What is funny is a year later I got a credit card no problem, because I was in university and I guess they assumed I would be a good credit risk. My credit score now is almost perfect
According to NPR’s Planet Money single best predictor for whether you will pay your credit bills on time is wild bird seed. People who buy it are much more likely to pay their credit card off. Apparently it has something to do with the altruistic act and sense of responsibility that these people feel towards birds. The biggest risk predictor is chrome accessories for vehicles or hanging out in a high-end pool hall. People who have these indicators are the worst credit risks. I have no idea if you buy chrome auto parts and wild bird seed. You can listen to the podcast episode here.
Build credit slowly and responsibly. Get one credit card, use it for small purchases, pay it off completely every month. Never carry a balance if you can help it. The interest rates are insane – often 20% or more. Do not use store cards, like a Bay card or a Zellers card. Those charge ridiculous interest. And watch the dates! You think as long as you pay it off every month you’re okay but that is not the way they work. It’s like every 28 days. In addition, you need to pay off the balance completely otherwise the interest charges carry over to the next month.
Keep old credit cards open even if you don’t use them. Part of your credit score is based on how long you’ve had credit. That first crappy credit card with the $500 limit? Keep it open. Just use it once in a while so they don’t close it for inactivity.
You should also check your credit report regularly. In Canada, you can get it free from Equifax and TransUnion. Look for mistakes – they happen more than you’d think. I once had someone else’s missed payments on my report. Took months to fix, but it was worth the hassle.
Pay everything on time. Not just credit cards, but utilities, phone bills, everything. Late payments can show up on your credit report and tank your score. I once missed paying a bill because I never received it. It didn’t show up in the mail. I paid it off in full the next month, but they didn’t care, it was my responsibility.
Building and maintaining good credit isn’t glamorous, but it’s one of the most powerful tools for financial freedom. A solid credit score can save you thousands in interest and open doors when you least expect it—whether that’s getting a mortgage, landing a job, or just enjoying lower rates. The key is consistency: pay on time, keep balances low, and monitor your report like a hawk (or maybe a responsible bird feeder). Your future self will thank you for the effort you put in today.