Using a First Canadian Credit Card Wisely

The task

Your friend Mei recently moved to Toronto as a permanent resident. She has just received her first Canadian credit card and wants to build a good credit history, but she is afraid of getting into debt. Advise Mei on how to use her card wisely.

• Read the task, prepare during the preparation time, then speak aloud for the speaking time.
• This is an original practice question written in a CELPIP-style format. It is not a real test question.
• The CLB level of each model answer was reviewed by a TESOL-certified instructor. It is not an official CELPIP score. This practice material is not affiliated with or endorsed by Paragon Testing Enterprises.
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Preparation

30 seconds

Speaking time

90 seconds

Question

7 of 10

Mei, congrats on your card! In Canada the credit history is very important, for example when you rent apartment or buy a car. It's not so hard, don't worry, if you are careful. Use the card only for small things, things you buy anyway, like groceries or phone bill. Don't buy extra stuff because you have the card. The most important thing, pay all the money every month. All the money, not only the minimum. If you pay only minimum, the interest is very high and the debt get bigger and bigger. You can make automatic payment from your bank account, then you never forget. And don't use all your limit. Only small part. Many cards at the same time, no, don't apply, even the store give you discount. It takes time, maybe one or two years. Be patient. If you have question, just ask me, okay?

Why this answer works

• Gives the essential habits and marks the key one ("The most important thing"), but some ideas come out back to front ("Many cards at the same time, no, don't apply").
• Simple money words (pay, limit, minimum) with varied slips ("rent apartment", "the debt get bigger", "even the store give you discount") and a repeated phrase ("All the money"), consistent with a CLB 7.
• Reassuring tone, though the ending is a general offer rather than a summary.

Mei, congratulations on your first card! Your credit history matters a lot here, for things like renting an apartment or getting a car loan, so it's good that you're thinking about it now. The good news is that it's not complicated. Here are a few simple habits. Use the card only for things you'd buy anyway, like groceries or your phone bill. Don't buy extra things just because you have credit available. The most important habit is to pay the full balance every month, not just the minimum payment. The interest on credit cards is very high, and that's how people get into debt. To make it easy, set up an automatic payment from your bank account, so you never miss the due date. Also, try to keep your balance low compared to your limit. For example, if your limit is a thousand dollars, try not to spend more than a few hundred. And don't apply for lots of store cards at once. Building good credit takes time, so be patient. Call me if you have any questions.

Why this answer works

• A short list of habits, with the most important one clearly marked ("The most important habit").
• One concrete example ("if your limit is a thousand dollars") makes the advice about the limit easy to follow.
• Accurate, everyday money vocabulary: full balance, minimum payment, due date, credit available.

Mei, the whole secret here is boring consistency, and you can set most of it up in ten minutes tonight. Put one small recurring bill on the card, your cellphone plan, say, and nothing else for the first few months. Then switch on automatic payments for the full statement amount, never the minimum. Between those two options, paying everything wins easily, because the minimum just lets the lender charge interest on whatever's left. Now, you might've heard that carrying a small balance builds credit faster. That's a myth, and an expensive one. Clearing it in full demonstrates exactly the same reliability without costing you anything. Here's what people forget, though. If a month goes badly, say rent and a dental bill land in the same week, still make at least the minimum on time, contact the lender, and clear the remainder as quickly as you can. A missed due date does far more damage than a temporarily high balance. After a year of this, you won't even remember being nervous. So, cellphone plan on the card tonight?

Why this answer works

• Starts from one principle ("boring consistency") and turns it into a set-up she can finish tonight, rather than a list of rules.
• Weighs paying in full against the minimum, corrects a common myth ("carrying a small balance builds credit faster"), and gives a plan for a bad month.
• Precise money language ("statement amount", "the remainder", "a temporarily high balance") and a short closing question that pushes her to act.