Fairstone Bank Addresses Common Credit Score Myths Ahead of 4th Annual Check Your Credit Score Day
Fairstone Bank invites Canadians to check their score, understand what it measures and use it to make informed...
Fairstone Bank invites Canadians to check their score, understand what it measures and use it to make informed financial decisions
Fairstone Bank is holding the fourth annual Check Your Credit Score Day on November 2, to encourage Canadians to review their credit score and credit report. Marking the start of Financial Literacy Month, the initiative aligns with the Financial Consumer Agency of Canada’s (FCAC) national “Talk Money” campaign, which encourages Canadians to have purposeful conversations about money and build greater financial confidence.
Fairstone Bank is using the day to clear up common myths about credit scores. Credit is often associated with stress, and a clearer understanding of the score can help Canadians use it to make informed decisions.
Myths That Keep Canadians From Checking Their Score
- Myth #1: Checking your own score lowers it
The key is to distinguish between two types of credit inquiries. Checking your own credit score or credit report is considered a “soft inquiry” and has no impact on your credit rating. A “hard inquiry” occurs when a lender reviews a credit file following an application for credit and can have a small and temporary effect on a score. People can therefore check their own score as often as they wish – without worrying that doing so will lower it – making it easier to understand their credit profile and spot errors or unfamiliar activity early.
- Myth #2: Your credit score is static
A credit score is a three-digit number, generally between 300 and 900, based on the information in a person’s credit report. It reflects how they have managed credit over time, but is not a measure of their personal worth or financial potential. A credit score can change as new information is reported to the credit bureaus. Paying bills on time and keeping balances manageable are two practical habits that can positively influence a score over time.
Information Helps Reduce Financial Stress
When people lack clear information about credit, they may postpone checking their score or reviewing their credit report. Not knowing where they stand can add to the stress many people already feel about money.
“Financial stress is something many Canadians experience, and one of the best ways to reduce uncertainty is to understand where you stand,” said Vivek Kumar, Chief Risk Officer of Fairstone Bank. “Checking your credit score is a simple step, but it can be an important part of understanding your overall financial health. Greater awareness allows people to identify potential issues earlier, make more informed decisions about borrowing and take action before financial pressures become more difficult to manage.”
Four steps to get started
- Check your score and report regularly. Canadians can access their credit score and credit report for free through Canada’s recognized credit bureaus, such as Equifax® Canada and TransUnion Canada, or through third-party providers, including Borrowell and ClearScore.
- Review the report for accuracy. Errors or unfamiliar activity should be reported to the credit bureau.
- Build healthy credit habits. Paying bills on time and keeping balances manageable can improve a score gradually.
- Ask questions. Talking about money with family, friends or a financial professional can help people better understand their situation.
Educational resources available throughout November
Throughout November, Fairstone Bank is offering resources that address common financial misconceptions to its employees and to Canadians. Free educational content on budgeting, credit and everyday money management is available in the Learn section of Fairstone.ca https://www.fairstone.ca/en/learn/finance-101
“From a risk perspective, knowledge matters,” Kumar added. “Understanding how credit works can help consumers make choices that are better aligned with their circumstances and their longer-term financial goals. You don’t need to be a financial expert. You need the right information, a clear picture of where you stand and the confidence to take the next step.”
About Check Your Credit Score Day
Check Your Credit Score Day is an annual initiative led by Fairstone Bank and held each year on November 2. It encourages Canadians to check their credit score, better understand their credit profile and build healthy financial habits. For more information about Financial Literacy Month, Check Your Credit Score Day, and to discover tools, tips, and resources to navigate real-life financial challenges, visit Fairstone.ca.
About Fairstone Bank of Canada
Fairstone Bank of Canada and its subsidiaries, including Fairstone Financial Inc. and Home Trust Company, deliver innovative, accessible and reliable financial solutions that enable Canadians to reach their financial goals. Collectively, we offer residential and commercial mortgages, consumer deposits and GICs, retail and automobile financing, credit cards and digital lending, in addition to unsecured and secured personal loans online and at more than 260 branches coast to coast. With a long-established history, we are proud to be Canada’s leading alternative lending bank. Learn more at FairstoneBank.ca.
Source : Fairstone Financial Inc.
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