Credit scores are an everyday part of life, and a commonly used factor in evaluating financial responsibility, and sound financial management.
It’s likely you have been asked permission for a credit check many times already – banks for any kind of loan, cell phone companies before entering a contract, rental companies, landlords and even employers. Financially responsible Canadians plan their budgets, investments, retirement, children’s education and their insurance coverage. Having a solid financial plan helps them sleep at night knowing they’ve done everything possible to protect what’s important to them and their family.
What is a credit score?
A credit score is a 3-digit number (ranging between 300 and 900) calculated by credit reporting agencies based on information contained in your credit report (record of your credit and payment history) at a specific point in time.
How will my credit score affect my insurance?
Your credit score will not affect your existing coverage or your eligibility for insurance in any way. Depending on your credit score, you may be eligible for a lower rate.
Will anyone see my credit score?
No. Your broker and the insurer take your privacy seriously. No one handling your policy at your brokerage or at the insurer will see your personal credit score. All credit scores are held in a secure database at the insurer.
What if I do not want to give consent for Intact Insurance to order my credit score?
Your broker can still submit your application for insurance, but you may not receive the best rate. The insurer will mark its files accordingly and your credit score will not be ordered. If you no longer wish to have your credit score checked, you can request this before your next renewal. Please contact Van Helden Agencies with any questions.
Where can I get more information on credit scores?
The TransUnion website www.transunion.ca is a great source of information.
Van Helden Agencies thanks Intact Inurance for providing the basis for this explanation.