As society becomes more & more dependent on credit, establishing and maintaining your credit continues to increase in importance.  More & more business are checking with the credit agencies before they decide to extend products or services to you.  The main areas this can be seen are with shelter, transportation, employment, self-employment and utilities.

Shelter – Most people are aware that having good credit is necessary to arrange mortgage financing.  While there are options for those with poor credit history, generally more down payment is required, and higher rates apply.  What many don’t know is your credit is also being used by many landlords prior to renting a unit.

Transportation – Unless you have $20,000 to $30,000 for a new car, it cannot be purchase without credit.

Employment – Many employers conduct background checks, which may include checking an applicant’s credit, prior to extending an offer of employment

Self-Employment – Most business start-ups require sizable amounts of money.  If you do not have savings, then credit, among other things are essential for business loans & financing.

Utilities – Utility companies such as phones, electricity & gas typically require a credit check prior to connecting their services.  If there have been past issues, they may request prepayment or a deposit up front.

Should you fall upon challenging times and you’re not able to main all of your obligations, it is important to be proactive and speak with your creditors.  Many may be able to extend payment holidays or decrease the minimum payments – particularly if you have a long history of good repayment.  If times do not improve and you’re not able to meet your obligations, speak with a credit counselor or trustee, as a consumer proposal or bankruptcy may be your best option.  When things begin to improve, it’s essential you begin to re-establish credit to show lenders despite past challenges, you know how to use credit properly.