Credit Score Myths Debunked

Personal finance expert, Barry Choi, offers up the truth behind the most common credit score myths in time for Financial Literacy Month

TORONTO, Nov. 2, 2020 /CNW/ - In a year when the pandemic has put a strain on personal finances, leading Canadians to make tough financial decisions because of job losses and reduced salaries, financial literacy has never mattered more. Among the most asked personal finance-related question is how to improve your credit score according to Toronto-based personal finance expert, Barry Choi. A recent report released by Equifax also found that credit delinquencies in Canada are up more than 10 per cent, year over year. With a "delinquency tsunami" forecasted to hit Canadians this fall, as mortgage deferral programs are slated to end in the coming weeks, maintaining a good credit score will be key to achieving financial success. To help Canadians wade through how credit scores work in time for the start of Financial Literacy Month (which takes place every November in Canada), Barry recently published an article debunking the most common credit score myths on Money We Have – one of the most trusted online personal finance and travel sources in Canada which he founded.

"Financial literacy matters, now more than ever," said Barry Choi. "It is an important skill to have, especially to help manage financial stress brought on by the pandemic. Credit score, in particular, has been at top of mind for many Canadians from coast-to-coast-to-coast – my readers included. However, there are many common misconceptions about what it does to your overall financial picture. As we mark Financial Literacy Month, I want to offer Canadians fact-based information to assist them in making better informed decisions as it relates to their financial health."

In his latest credit score guide Barry explains that unlike your budget and spending – vital elements that affect your personal finances – you have no real control over your credit score. While there are various things that you can do that will increase or decrease your credit score, Barry says ultimately that magic three-digit number is determined by the credit reporting bureaus and thus, you may not see immediate results. His article goes on to clarify what a credit score really is, who the key credit reporting bureaus are in Canada, what constitutes a "good" credit score and how it is really calculated. Not surprisingly, consistently paying your bills on time is the most important factor when it comes to determining your credit score – something Canadians who have had to defer their mortgages and credit card bills due to a job loss because of COVID-19 may now have to reckon with. Barry advises that at the very least, they should make the minimum payments so there are no missed payments. In addition, they should ensure the deferrals were reported correctly to the credit bureaus (by the banks and lenders) or their credit score may have seen a drop.

Barry is one of Canada's most outspoken advocates of financial literacy. After firing his financial advisor for charging him high fees and lack of investment advice, Barry embarked on a journey of self-education, because in his exact words, "no one will care more about my money than me." He has since become a sought-after personal finance and travel expert, making frequent media appearances, and featured in media across Canada and the United States including The Financial Post, The Toronto Star, Business Insider, The Globe and Mail, Breakfast Television, CTV News and HuffPost Live.

To read Barry's full article on credit score, visit Money We Have or https://www.moneywehave.com/how-to-improve-your-credit-score/.

Website: Money We Have
Instagram: @barry_choi
Twitter: @barrychoi
Facebook: @moneywehave

SOURCE Money We Have