Many Canadians say they don’t have the funds to make RRSP or
TFSA contributions. However, most Canadians have the funds for something else
important to their financial well-being: paying more than the minimum amount
on credit card balances.
while that kind of commitment helps pay off debt faster, it may also boost a
client’s credit rating.
88% of Canadians with credit cards “often” pay a greater amount than the
minimum due, reveals a survey by TransUnion, a credit reporting
company. (Only 7% of those polled weren’t cardholders.)
TransUnion research finds that the more consumers pay beyond the
minimum, the less likely they are to be delinquent in their payments.
may seem like a no-brainer, but TransUnion’s research is the first to quantify
good information for clients to know if they hope to qualify for a mortgage or
other loan, because the new research is expected to influence how lenders
assess borrower risk.
if [clients] can’t pay the full balance [on revolving debt], they may now find
that lenders view them more positively depending on the amount they pay,” says
Todd Skinner, president of TransUnion Canada, in a release.
influence on lenders is sure to interest Canadians, who appear keenly aware of
their credit histories. A Leger poll finds that 83% of Canadians discuss their
credit histories with their partners at least twice a year. Indeed, fully
86% know their partners’ credit histories, though that figure drops to 78% for
those with annual incomes less than $40,000.
last finding from the TransUnion survey: 39% of Canadian cardholders don’t know
why it’s important to pay more than their monthly minimum payments. If that’s
your client, it’s probably time for a conversation beyond a potential boost to
his credit rating.
Leger poll was conducted online between February 6 to February 9, 2017, and
included 1,569 Canadians.
survey was conducted from December 7 to December 16, 2016, and based on a
random sample of 1,010 Canadians age 16 and older.
the full TransUnion survey here.
Source: www.advisor.ca by Staff - 17-Feb-2017