MBNA Logo
Credit Cards

Managing Credit

Credit is a financial tool that can offer convenience and financial flexibility. But, like any tool, it works best when used responsibly and with care. Control your credit, don't let it control you.


What are the advantages of establishing credit?

Establishing good credit tells others that you are financially trustworthy. When you use a credit card to make a purchase, you enjoy the safety of not having to carry a lot of cash. You have the peace of mind that comes with having a financial security blanket for emergency needs. And you're protected against financial loss if your card is lost or stolen. If you lose cash, it's almost never recovered.


Back to Top Back to top


How can I manage my credit responsibly?

Credit is just one aspect of a person's overall financial picture. The best first step to managing credit responsibly is to manage your money responsibly. This means creating and sticking to a budget, paying your bills on time, and not taking on more debt than you can handle. Here are a few practical tips you can follow:

  • Use the 20/10 rule: Never borrow more than 20 percent of your annual net income after taxes, and make sure your monthly payments never exceed 10 percent of your monthly net income.
  • Use your credit for planned purchases that fit into your monthly budget, and avoid making impulse buys for bargain-priced items. Those bargains won't seem like bargains when monthly interest charges are taken into consideration.
  • Avoid approaching or reaching your credit limit. Not only will you save on monthly finance charges, you'll be keeping credit available for when you need it most: for an emergency car repair or medical bill, for example.


Back to Top Back to top


How do I know when my credit card spending is getting out of hand?

Here are some warning signs. If any of these apply to you, it may be time to take a fresh look at your financial situation or seek professional financial assistance.

  • You're consistently paying your bills late and making only the minimum payment each month.
  • You find yourself surprised by the number of new purchases on your statement each month.
  • You've reached or exceeded the credit limit on one or more of your accounts.
  • You need to take on overtime work, or even a second job, just to make your monthly debt payments.

More information:
Credit Counselling Canada

IMPORTANT: By choosing this link you will be taken to another website where the privacy and security policies may differ from our site. The owner of that website is solely responsible for the products, services, and content on its website. Please examine the policies of their site and review all the terms of the products, services and content they provide.


Back to Top Back to top