Credit Cards 101 and Building Your Credit History

A credit card looks like a debit card, but it works very differently. With debit you spend your own money. With credit you borrow the bank's money and promise to pay it back.

Why credit matters in Canada. Landlords, phone companies, lenders and sometimes employers check your credit report, which is kept by agencies such as Equifax and TransUnion. It produces a credit score (generally 300 to 900). A higher score helps you get an apartment, a car loan or a mortgage on better terms. Credit history from your home country usually does not transfer, so newcomers start fresh, but some banks offer newcomer credit cards to help.