Why You Must Know Your Credit Score

April 17, 2018

It is very common that Canadians don't know how a credit score can impact their life. Here are 3 situations that make it imperative to know your score.

Anyone who has applied for a credit card, or a loan, has a credit file. Because borrowing is so prominent in the lives of Canadians, over 21 million of us own a credit card, and have a credit report that displays most of our personal financial data. This allows a company or lender that is considering granting an individual a loan to assess 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 impact their life outside of an application for a loan or a mortgage. Here are three situations that make it imperative to know your credit score.

1) You could be denied a job

It has been reported that somewhere around 60% of employers (especially those that work in finance) will check a potential employee’s credit before they finalize a hiring decision. In this instance, having poor credit can hinder you from obtaining your dream job.

2) It will determine where you live

If you’re looking to rent an apartment, it’s always important to be aware that most landlords, and some rental companies, will require a credit check as well as verification of income before allowing you to take over a property.

3) You can get stuck paying more for insurance

When determining your rate, insurance companies also use credit scores to assess your level of financial risk. If you are perceived 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 circumstances are heavily dependent on your credit score being maintained. By knowing your credit score you will be able to determine your overall health, and start on the steps necessary to raise your score if necessary.

So how can you check your credit score for free?

Borrowell has one of the easiest ways to check your credit score for free in 3 minutes. You can monitor your credit score, track changes monthly, and they'll give you recommentations on how to improve your score. This kind of credit check does not hurt your credit.


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