Despite Massive Debt, British Columbians Are The Best At Handling Money In Canada
Victoria and Vancouver residents have the highest credit score in Canada.
Even though Canadians are in serious debt, it seems as if many across the nation know how to handle their money and finances. In fact, British Columbia's credit scores show that residents seem to know exactly what they're doing in terms of handling their money. Vancouverites have the average credit score of 776, which is the second-highest in the country according to new numbers released by The Canada Mortgage and Housing Corporation (CMHC) and Equifax. Victoria claimed the first spot with the average score of 780.
Although many Canadians are in and Vancouverites are struggling to find affordable housing, the credit scores across the country prove we are paying all our bills on time.
"B.C.-wide the economy has been very strong over the past few years," said Eric Bond of the CMHC to CTV news.
Vancouver and Victoria's scores show residents have enough employment opportunities to pay back their loans on time and maintain a good credit score rating, which is anywhere above 715.
However, while British Columbia residents are facing some of the more pricer housing options, this may actually be why their credit scores are the highest. These cities have also scored high because the residents require a good credit score to be able to purchase a home.
"When houses are more expensive, you have to take out a larger loan, and it's only people who have higher scores who can qualify to take out larger loans," Bond said to CTV news.
"The best way to improve your credit score is to make your payments on time each and every month," said The Credit Counselling Society’s Greg Norris to CTV news.
Norris advised against using credit cards to the limit and maximizing line of credits, saying it actually lowers your credit score.
The CMHC website also advises on how to improve your credit score, saying its best to try and pay off your debts as quickly as possible and to reduce the number of credit applications you make.
"Never go over the limit on your credit cards, and try to keep your balances well below the limits," the website read.
Here's the credit score for the other major cities in the country:
- Victoria 780
- Vancouver 776
- Calgary 765
- Edmonton 760
- Regina 759
- Winnipeg 765
- Toronto 774
- Montreal 769
- St John’s 761