Why Your Credit Score Matters- Information From Our Victoria Debt Consultants

One of the challenges for many people, particularly younger people in the Victoria area, is to understand how a credit score has an impact on the future and opportunities and options for years to come. Our debt consultants work closely with our clients to help rebuild their credit scores during and after their debt repayment plan or program is completed.

Why a Credit Score Matters

A credit score is a snapshot of your record of managing your credit. In Canada, credit scores are set by two different credit reporting agencies. These are TransUnion and Equifax, which are also two of the three credit rating agencies used in the United States.

Lenders use your credit score to determine how safe or how much of a risk lending money or providing credit is based on your past history. For example, a person with a top credit score demonstrates they make payments on time and are able to manage credit, meaning they are a low-risk borrower to a lender. This also allows the lender to offer lower interest rates on loans, which is important for large purchases such as homes or vehicles.

What Counts

Our debt consultants help consumers in the Victoria area to understand what issues credit reporting agencies consider. In general, any type of bills you owe are monitored by the credit agencies. Late payments, partial payments, or missed payments negatively impact your score.

Mortgages, car loans, lines of credit, and all credit card debt is also monitored by these agencies. The 4 Pillars debt consultants can assist customers in designing effective plans to ensure they can make payments on time and begin to rebuild their credit, even if they have recently gone through a bankruptcy or Consumer Proposal.

To find out more, call our consultants today at 866-690-3328 for a free initial consultation.