Why do I need good credit?

Your credit situation impacts you in more ways than you may think. Many Canadians have the misconception that having bad credit only affects their ability to obtain financing; however, having bad credit can affect you in many ways. Here are some examples:

Obtaining financing: Your credit situation will help determine if you get approved for financing. If you do get approved, then your credit will help determine the interest rate and cost of borrowing. People with lower credit often face higher borrowing costs and may even need to resort to quick cash loans.

Getting a job: Many employers require a credit check before making an employment offer. If you have bad credit, then it may be a reason for an employer to think twice before extending an offer, especially in a competitive job market.

Renting an apartment: A landlord may check the credit of a potential tenant. If you have bad credit, then it may be a reason for the landlord to decline you as a tenant.

Getting a cell phone plan: Cell phone providers may check your credit before issuing you a monthly phone plan. If you want to avoid having a pay-as-you-go plan which is often more costly, then having good credit may help.