Many Canadians are also worried about their investments and keeping up with everyday expenses
The cost of living is rising and causing significant concern among Canadians, not just for short-term budgets but for their long-term financial future.
A newly released report from Equifax reveals that 61% of survey respondents are concerned about being able to live comfortably in retirement. They were asked to reflect on their current financial circumstances and the pandemic.
Results show that more than half of respondents are concerned about their investments, 4 in 10 are concerned about paying off debt, and almost as many say that paying monthly bills is concerning.
Other things that are on the minds of Canadians include job security, credit scores/reports, and the end of federal COVID support programs – around one third of respondents mentioned these.
However, the survey also found that more people are taking better care of their finances by checking credit reports and scores. More than three quarters do so at least once a month compared to the two thirds who rarely or never did five years ago.
“While there are still a lot of worried people, it’s encouraging that consumers are taking the time to better understand their relationship with credit,” said Julie Kuzmic, Equifax Canada’s Senior Compliance Officer, Consumer Advocacy. “We’re certainly seeing more people checking their credit reports and scores now compared to a few years ago, but there’s still a lot of misunderstanding about how credit scores are calculated and what information goes into a credit report.”
Understanding credit reports
Younger Canadians are more likely to be monthly credit report checkers, especially to check that information held about their finances is correct.
But this cohort of 18-34 year olds are also more likely to be confused about how credit scores and reports work.
Building and maintaining a score of 750 or more is key to lenders considering a credit applicant as a lower default risk.
Here’s how survey respondents fared when asked to identify whether statements about credit scores and reports were true or false:
|
|
% Agreeing to a False Statement |
|
|
False Statement |
General Population |
Adults 18-34 |
|
If you have a good credit score, you always get approved for a loan |
48% |
49% |
|
Credit bureaus decide whether or not you qualify for a loan |
43% |
49% |
|
You have one credit score |
40% |
50% |
|
Higher salaries result in better credit scores |
22% |
30% |
|
Checking your own credit reports hurts your credit scores |
20% |
28% |
|
People who avoid using credit have higher credit scores |
14% |
21% |
|
Married people have a joint credit report |
13% |
21% |
|
Credit reports contain RRSP balances |
10% |
19% |
|
True Statement |
||
|
Credit reports do not contain credit scores |
14% |
18% |
|
Missing a credit card payment can stay on a credit |
46% |
53% |
|
|
|
|
