BBB urges consumers to be credit savvy before taking on renovations

The real problem often begins long before the consumer heads to the bank for a loan.

The Better Business Bureau of Vancouver Island is reminding consumers to take the time to become credit savvy before embarking on home improvement renovations.

“We get a number of calls this time of year from consumers, who are eager to start a renovation or home improvement project, that misunderstand how their use of credit has negatively impacted their credit rating,” said Rosalind Scott, president and CEO of the local BBB.

“These consumers are then very upset with the bank when they find out that they are not eligible for home improvement loans or credit cards, despite the fact that they think they have a good credit history.”

The real problem often begins long before the consumer heads to the bank for a loan. It usually begins earlier in the year (or even the year before), when the consumer took advantage of “in-store discounts” related to the opening of an account associated with store’s credit card program.

“What consumer’s don’t often realize is that those ‘buy now, pay later programs,’ and those ‘get a discount by opening a store credit card’ opportunities, are actual financial activities that impact your credit history and your credit rating,” said Scott.

“Even if you never use the program or card again, the fact that you opened it goes on your credit report and has the potential to impact your access to additional credit or loans in the future.”

Many consumers think that by cutting up a credit card that the account then no longer exists. This of course is not the case. To cancel a credit card there is a very particular set of steps that you must take. And just because you cancel a credit card it does not mean that the payment information related to the card comes off your credit report immediately.

Closed credit accounts, with zero balance and no associated negative information, will remain on your credit report for 10 years from the date the account was closed.

For more helpful consumer tips, please go online to: bbb.org/Vancouver-island.

 

Just Posted

“Winter Heart” a musical gift to Sooke

Community Choir’s Christmas offering a thoughtful seasonal concert

New report finds B.C. victims of opioids crisis on lower of end of socio-economic spectrum

UVic scholar calls for decriminalization of drugs responsible for opioid crisis

NDP leader Jagmeet Singh visits with Langford high school students

Students asked him questions about current political issues

Alleged child abduction attempt in Langford a family issue, RCMP say

Const. Matt Baker with West Shore RCMP says parents should not worry

City of Victoria to see 588 affordable housing units

Provincial funding is aiming to see 4,900 new mixed-income rental properties across B.C.

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Vancouver Island remembers

Important stories shared as Islanders salute those who made the greatest sacrifice

Student arrested at Vancouver Island elementary school

Pupils never in danger, incident unrelated to the school

POLL: Have BC Ferry waits ever forced you to cancel your travel plans?

Many BC Ferry passengers heading out from Swartz Bay to Tsawwassen on… Continue reading

Stink at B.C. school prompts complaints of headaches, nausea

Smell at Abbotsford school comes from unauthorized composting operation

Fear of constitutional crisis escalates in U.S.; Canadians can relate

Some say President Donald Trump is leading the U.S. towards a crisis

Racist slur cleaned off memorial at Qualicum First Nation graveyard

Site was hit by vandals on Friday; many immediately offered support and assistance

B.C.-based pot producer Tilray reports revenue surge, net loss

Company remains excited about ‘robust’ cannabis industry

Canada stands pat on Saudi arms sales, even after hearing Khashoggi tape

Khashoggi’s death at Saudi Arabia’s consulate in Istanbul further strained Riyadh’s already difficult relationship with Ottawa

Most Read