Money Myths – Part 5

Every day there seems to be new advice popping up on how to manage your finances. From credit score education to consumer proposals, there is a lot of information available online. This is the fifth and final part of our series on Money Myths – common misconceptions Canadians have about money.

Money Myth 5: I always pay my bills on time, and I check my bank account and credit card statements often. I don’t need to check my credit report.

Fact: A bad credit score can sneak up on you. With credit, we don’t usually think about our score until it is time to make a major purchase. I personally don’t think about my credit unless I’m looking for a vehicle, or if I’m looking to rent or buy a home. Through my research, I’ve quickly learned that this is the wrong approach.

A late payment, a missed payment, or an error from the credit bureau or reporting company can put your plans on hold and take months to correct. Saying you don’t need to be aware of your credit score because you make responsible payments is like saying you shouldn’t think about your blood pressure because you are a healthy weight – it’s worth taking the extra precaution so that you are informed.

At minimum, you should be checking your credit score annually. If you’re rebuilding your credit (hello!) or considering a major purchase in the near future, it wouldn’t hurt to take a peak at your score every 3-4 months.

With Refresh Financial, you can check your score now for less than it costs to do so directly from the bureau! So get started now!

If you think you’re credit could be improved, it may be time to consider our Secured Savings Program!