What is High Credit?

High credit is the amount of money that an individual or organization can borrow from banks, credit unions or other financial organizations. The credibility of a person is based on his or her credit report.
This article is divided into three sub-sections:
1. Credit Limit Regulations in Canada
2. Discretionary High Credit Limit
3. Building Credit in Canada

What are Credit Limit Regulations in Canada?

The new regulations for credit cards and limits that took effect in 2010 are designed to protect Canadian credit card users. These changes follow the government's vow to protect Canadian consumers from the lingering effects of a recession.
The following is a summary of the regulations:
1) The regulations will include provisions for a summary box that will list interest rates and fees.
2) Dates will be included of how long it will take to repay a credit balance if only the minimum payment is made each month.
3) There must be a minimum 21-day interest-free grace period on all new credit card purchases when the outstanding balance is paid in full.
4) Consent is mandatory for credit limit increases.
5) There will be controlled debt collection practices.
6) Over-the-limit fees will be prohibited from holds placed by merchants.
7) Interest rate increases must be disclosed in a timely manner before they take effect.
8) If a due date falls on a weekend or holiday, a payment made the next day must be considered as being on time.
9) Payments will be allocated to the amount with the highest interest rate.

What is Discretionary High Credit Limit?

The federal laws of Canada allow discretionary high credit limit for banks and credit card corporations. High credit means the limit of the amount a person can borrow using the credit card. This High Credit is different for each type of card. The most common cards are silver card, gold card and platinum card. These have an increasing high credit value as in the same order with the silver card being the lowest and the platinum having the highest.
The total credit score is the sum of five different factors:
Payment history (35% weight)
Total debt owed vs. Available credit (30% weight)
Length of time establishing credit (15% weight)
Types of credit established (10% weight)
Inquiries and New accounts (10% weight)

What is Building Credit in Canada? in Canada provides these tips for consumers who what to build a solid credit reputation:
1. Check and understand credit reports and scores.
2. Open a bank account.
3. Open some sort of regular or high interest savings account.
4. Start with an overdraft.
5. Open a department store credit card account.
6. Apply for a secured card.
7. Find a co-signer.
8. Accept offers of credit through banks.
9. Invest
10. Once you have the credit, use it carefully.

High Credit Lines

If you have a high credit line, it is not necessary to use all of it. Whatever you spend, it is imperative that you pay it back on time. It will not hurt to have a higher credit limit for as long as you are not using more than you need.


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