President, Loans Canada
Managing Partner, Sharpshooter Funding
A good credit score is important at every age and life stage — young student, adult learner, entrepreneur or established professional.
Your personal credit score is a public statement of how well you manage your money — and can affect your ability to rent an apartment, borrow money or obtain a mortgage. In some cases, your credit score can even determine whether you get the job you want. “Certain industries check the credit score of potential employees and while this is not the case for all jobs, it could affect your ability to enter your chosen field,” says Scott Satov, President of Loans Canada, a loan comparison website and platform offering credit information.
Less time stressing, more time creating your future
Building and maintaining a good credit score from a young age means less time stressing over credit and more time creating the future you want. If that future includes entrepreneurship, then a good credit score and good credit history will serve you well in getting a business loan. “Many business funders look at your personal credit score to decide whether or you qualify for funding, so they’re not just looking at your cash flow or earnings potential. They also want to get an idea of how you manage your bills,” says Paul Pitcher, Managing Partner at Sharpshooter Funding.
And finally, in post-grad life, good credit plays role in major life purchases like a car or house. “If you don’t have good credit, you’re going to end up paying higher fees on borrowed money, and that can easily spiral out of control,” says Satov.
Students are encouraged to take advantage of the many free credit score tools available to learn more about this key aspect of financial management — and to start building their credit while still in school. A good starting point is with a secure credit card, where you pay an upfront deposit to secure the card. “Students can then use the card as a tool to build their credit score,” says Satov.