Anyone applying for a credit card, or a loan, has a credit file. Because borrowing is so conspicuous among Canadians, over 21 million of us own a credit card, and have a credit report that shows most of our personal financial data. This allows a company or lender that is considering granting an individual a loan to evaluate one’s ability to pay the money back.
However, it is very common for Canadians to have a limited understanding of how a credit score can affect their life outside of an application for a loan or a mortgage. Here are three scenarios that make it important to know your credit score.
1) You could be declined for a job
It has been reported that around 60% of employers (especially those specializing in finance) will review a potential employee’s credit before they finalize a hiring decision. In this instance, having poor credit can hamper you from obtaining your dream job.
2) It will decide where you live
If you’re looking to rent an apartment, it’s always vital to be aware that most landlords, and some rental institutions, will require a credit check as well as verification of income before permitting you to take over a property.
3) You can be paying more for insurance
When discerning your rate, insurance companies also use credit scores to assess your level of financial risk. If you are seen as a greater liability, they will typically charge you more. Also, many places allow credit scores to be used as a factor in determining premiums because they can be linked to increased claims.
These three life situations heavily rely on your credit score being maintained. By knowing your credit score you will be able to determine your overall credit and financial health, and start on the steps necessary to raise your score if necessary.
There are two easy ways to access your score and assess your credit’s health. By visiting either TransUnion Canada or Equifax Canada, you will be able to contact either of the two major credit bureaus in Canada and find out your score at a relatively low cost.
If you happen to see a low credit score, we can help you rebuild it with a car loan. Go to Canada Auto Experts or call 1-855-550-5565 to chat with a credit specialist today!