Credit in Canada: 5 Myths You Need To Stop Believing

January 8, 2025

When it comes to credit, there’s no shortage of myths and misinformation. If you’re living in Canada it’s important to understand how credit works, so you can make the best financial decisions for your lifestyle. Let’s bust some of the most common myths about credit and set the record straight!

1. Myth: Checking Your Credit Score Hurts It

Fact: A personal credit check, also known as a “soft inquiry,” doesn’t impact your score. It’s a great way to stay informed about your credit health, especially when planning for big decisions like renting a new place or buying a car.

2. Myth: You Need Perfect Credit to Get Approved

Fact: Lenders consider more than just your credit score. Your income, debt-to-income ratio, and financial history also play a role. Plus, at GetGoing, we specialize in helping people with lower credit scores get back on track.

3. Myth: Carrying a Balance on Your Credit Card Boosts Your Score

Fact: Paying off your balance in full every month is better for your score and your wallet. Carrying a balance can lead to high-interest charges, which add up fast!

4. Myth: Closing Old Credit Cards Improves Your Score

Fact: Closing a credit card can reduce your available credit and shorten your credit history—two factors that impact your score. If you don’t use a card, consider keeping it open and using it for small, occasional purchases.

5. Myth: All Debt Is Bad

Fact: Not all debt is created equal. Some debt, like a mortgage or student loan, is considered “good debt” because it’s an investment in your future. The key is managing your debt wisely and avoiding unnecessary borrowing.

Understanding credit doesn’t have to be intimidating! By knowing the facts, you’ll be better equipped to handle your finances and make informed choices.

Stay tuned for more tips and insights from us—because your financial journey deserves to be as smooth as a Sunday drive through BC’s scenic routes!

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