Now a days almost everyone throughout Canada will obtain their first credit card shortly out of high school. Credit cards are a great resource for emergencies and building a credit rating, which will help you when the time comes to purchase a vehicle or home. It's important however to educate yourself on how to use a credit card.

Cory Peters, Director of Consumer Credit Division says, "What first time card holders need to remember is that it's not free money. Anything you use your credit card for has to be paid back to the financial institution you've borrowed from."

Below our some helpful tips regarding proper use of credit cards:

  1. Make sure to pay at least the minimum payment due on your credit card statement each month or if you can the whole balance owing.
  2. Never give out your PIN number to anyone including friends or family.
  3. Review your statement often to make sure there isn't any suspicious or fraudulent activity.
  4. Avoid taking out cash advances on your credit card. These are usually costly and interest is charged immediately. 

Having a credit card can help provide peace of mind in case of emergencies or for things where a credit card must be provided (booking hotels for example) but it's important to be mindful of what we choose to use them for outside of that. Peter's also stated, "Students should know their budget and stick to it."