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27 March 2024

Consumer

Do You Know Your Credit Score? Here's Why It Matters

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Did you know that your credit score can both negatively and positively impact your life? Don't underestimate the power of your score—a number between 300 and 850 which reflects your financial responsibility and can save you thousands of dollars over time. For instance, lenders reward borrowers with high scores with significantly lower interest rates.

Are you ready to learn more about your credit score and how to improve it?

How is your score calculated?


Lenders determine your score by analyzing your financial behavior. The following components are essential in providing a snapshot of your financial reliability and habits. Gaining a grasp on these factors empowers you to manage credit responsibly and make informed decisions that will improve your financial health.

  • Payment History: Your history of on-time payments is a critical factor that affects scores.

  • Credit Utilization Rate: How much of your available credit you use. Try to use less than 30% to show you manage credit responsibly.

  • Length of Credit History: How long have you been making good credit decisions? A longer history suggests experienced credit management, favoring your score.

  • New Credit and Credit Mix: Frequent applications for new credit can signal risk, potentially lowering your score. Likewise, a diverse set of credit accounts shows you can handle various types of credit, enhancing your score.

The Consequences of Neglect


Ignoring your score can have tangible consequences. Canadians who keep an eye on their scores and work to improve them can avoid getting stuck with high-interest rates.

These rates can seriously inflate the cost of borrowing money. Not to mention, regularly checking your score is crucial. Did you know it can also help you spot issues like identity theft before they cause long-term damage?

Empowering Yourself through Credit Monitoring


By knowing where your credit stands at any given time, you can exercise greater control over your finances. Using a tool to obtain and track your current standing can be a game changer.

easyfinancial’s Credit Optimizer is one such tool that can help you monitor your score and, if it needs to be improved, offers solutions to boost it. It boasts a range of helpful features that are beneficial for anyone, regardless of their current score, such as personalized credit-building strategies, real-time recommendations, debt analysis and even fraud alerts.

Beyond Borrowing: The Broad Spectrum of Your Credit Score


A strong score is essential for more than just borrowing money at a great rate. It can also, among other things, influence your ability to rent apartments. Some landlords require a minimum score to qualify. For example, the average score needed for renting in markets like Ontario can be as high as 716.

This demonstrates the broad impact of your score on various aspects of your life.

Crafting a Robust Financial Future


By understanding the factors that influence your score, you can take proactive steps to better manage it. Checking your report helps you track your credit health and make informed financial decisions.

Think of your credit score as a valuable asset. Just like any asset, it requires careful monitoring, informed decisions, and an understanding of its impact. By actively managing it, you're building a strong foundation for a stable and prosperous financial future.


Get approved for financing today!

Get approved for financing today!

Whether you are an existing client or brand new to LendCare, you can access financing for automotive repairs, healthcare (including dental and vision), and trips to the vet.


You can learn more about—and apply for—our current consumer financing programs below.

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