Managing Your Credit
	Personal Financial Plan
	Goals
	1. Evaluate your credit report. NOTE: Optional since there is a fee to obtain your credit report.
	2. Establish a credit limit that will enable you to pay credit card balances in full each month.
	3. Select credit cards that will provide the most favourable terms at the lowest cost.
	4. Establish practices that will safeguard you from identity theft.
	Analysis
	1. Obtain a copy of your credit report from http://www.equifax.com/EFX_Canada/consumer_
	information_centre/ownreport_e.html and http://www.transunion.ca/ca/personal/personal_en.page,
	scrutinize the report, and report any inaccuracies to the credit bureaus.
	http://www.equifax.com/EFX_Canada/consumer_information_centre
	2. Referring to your personal cash flow statement, determine how much excess income you have each
	month. Based on this amount, set a self-imposed credit limit each month so that you can pay off your
	balance in full. To illustrate the trap of credit card debt, use the worksheet below to determine how many
	months it will take you to pay off a balance of $1000 at three different monthly payment amounts. Revise
	your cash flow statement based on your decisions, if necessary.
	COMPLETE THIS EXERCISE EVEN IF YOU HAVE NO OUTSTANDING CREDIT CARD DEBT.
			Alternative 1	Alternative 2	Alternative 3
	Credit Card Debt		$1,000	$1,000	$1,000
	Monthly Payment
	Interest Rate per Year
	Months to Pay off Debt
	3. Use the following worksheet to select a credit card with favourable terms. Rate the cards
	from 5 being the best in a category to 1 being the worst. As an alternative to this simple
	scorecard, the Financial Consumer Agency of Canada provides an interactive credit card
	tool that you can use to select a credit card based on the province in which you live.
	This tool can be accessed at:
	http://www.fcac-acfc.gc.ca/Eng/forConsumers/topics/creditCards/Pages/home-accueil.aspx
	Bank Credit Card Scorecard
			CREDIT CARD ISSUER
	QUESTION
	1. Annual fee
	2. Interest rate on purchases
	3. Interest rate on cash advances
	4. Transaction fee for
	cash advances
	5. Insurance on purchases
	6. Credit earned toward businesses
	purchases at selected
	businesses
	7. CASH REBATE
	10. Credit limit available
	TOTAL
	4. Inventory your wallet/purse to determine if you can reduce your risk to identity theft by selectively
	removing certain items.
					If Previous
			Identity Theft	Necessary	Column Is Marked
			Risk	to Carry?	"No," Where
			High/Med/	(Yes/No)	Should Item
	Item Description		Low		Be Stored
	Decisions
	1. Are there any errors on your credit report that you must correct? How can you improve your
	creditworthiness?
	2. What is your self-imposed credit limit each month for future credit card purchases? How much of your
	income do you need to allot each month to paying off any existing credit card debt?
	3. What credit cards offer the most favourable terms for your needs?
	4. In addition to inventorying your wallet/purse and removing items from it, what other steps can you take
	in your life to reduce your exposure to identity theft?