Author Topic: Quick credit score question  (Read 2738 times)


  • Stubble
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  • Posts: 117
Quick credit score question
« on: January 16, 2015, 08:48:28 AM »
My bank keeps trying to sell me an RRSP loan. I have sufficient funds for my max RRSP contribution (not yet in that account,) but I was wondering if I should take it to add to my credit record for credit score purposes. If so, how long should I hold it? The loan I would take would be between 2-5k and I believe the interest rate is 6% compounded monthly. 

I'm 26, so the only "opportunities" I've had to take debt is:
-student loan, paid off two weeks before graduation (no interest paid);
-credit card for the last 8 years, always paid in full;
-line of credit I got last year, never used;

Credit score 750 (6 months ago anyway)


  • Handlebar Stache
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  • Posts: 1686
Re: Quick credit score question
« Reply #1 on: January 16, 2015, 09:00:16 AM »
It sounds like you are in Canada. 

It is not a good idea to borrow money to enhance your credit score.  It's not necessary and a waste of money.  750 is fine.


  • Magnum Stache
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  • Posts: 3816
  • Location: France
Re: Quick credit score question
« Reply #2 on: January 16, 2015, 06:24:01 PM »
No, don't.

Just get 3-4 credit cards.

If you don't have them:

Chase VISA (no forex fee, when you travel/buy online)
Amex SimplyCash (always good to have an Amex, this is IMHO the best free one)
MBNA SmartCash Mastercard (5% on gas/groc first 6 months, 2% after, to a monthly cap of $400 IIRC)

That's one card from each issuer.

Most of the big bank cards are complete garbage. Scotia Gold Amex is good if you get the use out of it. MBNA Rewards Travel is ok if the $89 fee is justified by the amount of spending you do, but really it's likely to be marginal.


  • Guest
Re: Quick credit score question
« Reply #3 on: January 16, 2015, 07:45:20 PM »
I don't know about RRSP, but a 401k loan comes out of the employee's assets in the account. The employee pays the principal and interest back to his/her account. There is really is no "loan" and nothing is reported to the credit bureaus. There is only a tax penalty for failure to repay.


  • Stubble
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  • Posts: 117
Re: Quick credit score question
« Reply #4 on: January 17, 2015, 09:51:30 AM »
Thanks guys!

@SaintMichael - here you can borrow money to add to it just like someone might borrow money for a big screen TV.


Wow, a phone plan for fifteen bucks!