Many HKers like to make sure they have saved up enough before buying a car or something of that size. But somewhere down the line, you'll need to borrow money from a bank for buying a house or to cover emergencies that you never thought you would come across in a million years. That's where your credit rating comes in the picture.

It happened to someone I know that they need to get a bank loan for an emergency, but was declined because they always like to buy with cash and only has just started to use credit card.

My advise is, you need to start to build up your credit rating the sooner the better.

Building up your credit rating by just using credit card (and of course pay the bill on time) takes a little longer so when possible, think about getting a small personal loan from the bank, something like furnishing your room/house that you already have the cash for. As long as the bank thinks it's legit and you have some kind of asset like a car or a healthy bank account, you're set. Think about the interest you have to pay on the loan as insurance. This will benefit you in the long run.

For those who need to get a credit card, you can start with your local bank, see what they have. Royal Bank of Canada currently has an offer where you won't need to pay a monthly fee for certain account(s) if you signed up for their credit card. There is one you can earn points for buying groceries and the points will be credited back to your credit card once a year. I heard Scotia Bank has a good one too but I’m not familiar with it. Other banks and credit unions have their own types of credit cards with various incentives so shop around to find the one that suits you.

Photo by Konstantin Evdokimov on Unsplash