Everyday Banking
How to manage your credit
Credit can help you build value, but if used incorrectly, it can cause you a lot of grief. Know how to manage your credit for the best outcome.
A line of credit can act as a safety net in addition to your other savings in case of an emergency or unexpected expense.
It's also an excellent way to manage credit card debt. Consolidating your debt is one of the easiest and smartest ways to use your line of credit.
Simply pay off all your credit card balances with it, then make only one monthly payment. Credit and department store cards can charge 20% or more in interest compared to your line of credit's much lower variable rate. You'll save money every month in interest and the amount you pay is always flexible.
- Pay interest only on the amount you use
- Consolidate high-interest debt with a single, lower payment each month
- A reliable source of cash for emergencies
- Access funds instantly; by cheque, Access Card debit card, ATM, online or phone
Credit limits – unsecured vs. secured
The amount of credit you are approved for is based on your full financial picture, including your collateral security, income, credit history and personal net worth.
Unsecured lines of credit don't require collateral; for larger amounts, many use the equity in their homes or other real estate holdings as collateral for secured LOCs.
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