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

Sooke passes budget with 7.17% tax increase

Six positions added to municipal ranks

Saanich to recognize Coun. Judy Brownoff for a quarter century on council

Award presentation will take place Monday evening

Saanich to potentially host first hydrogen fuel station on Vancouver Island

Station proposed for corner of Quadra Street and McKenzie Avenue

Greater Victoria Harbour Authority to fall fake eagle tree at Ogden Point

Last year a fake tree was installed to try to entice eagles to stay in the area, without much success

Ambitious B.C. Aviation Museum need $10M to get iconic Lancaster back in the air

Volunteers flock to work on bomber, restoration expected to take 10 years

VIDEO: The ‘most cosmopolitan’ of butterflies could migrate to B.C.

The painted lady butterfly will likely arrive this summer from Southern California

Inspirational Vancouver Island youngster dies after battle with brain cancer

Kaiden Finley ‘was seriously the strongest 11-year-old’

Is it a homicide? B.C. woman dies in hospital, seven months after being shot

Stepfather think Chilliwack case should now be a homicide, but IHIT has not confirmed anything

Indecent caller handed 18-month conditional sentence

Vancouver Island man pleaded guilty to making indecent phone and video calls to women across B.C.

Sources say Trudeau rejected Wilson-Raybould’s conservative pick for high court

Wilson-Raybould said Monday “there was no conflict between the PM and myself”

First Nations public art piece stolen in Nanaimo

Spindle Whorl went missing over the weekend, according to Nanaimo RCMP

Father-son duo at B.C. Children’s Hospital helps new dads fight depression

The pair teamed up to introduce the only known research-based mindfulness workshop for new dads

Mexican restaurant in B.C. told to take down Mexican flag

General manager of Primo’s Mexican Grill in White Rock: ‘I’ve never heard of anything like this’

B.C. NDP moves to provide tax credits, tax cut for LNG Canada

Provincial sales tax break of $596 million repayable after construction

Most Read