When it comes to managing your finances, credit can play a significant role. Credit allows you to borrow money for different purposes, including purchasing a car, buying a home, or paying for your education.
In Canada, there are four main types of credit: instalment credit, revolving credit, mortgage credit, and open credit. Each type of credit works differently, and it’s essential to understand the differences to choose the best option for your needs.
Let’s explore each type of credit in more detail.