Magical Credit Blog

In our society today, the credit report is a critical document that records your financial profile from a debt borrowing and repayment standpoint. By aggregating all your outstanding debts together in one place, the report enables the user to see how well the borrower has managed to repay debts on time across multiple accounts. These accounts include everything from credit card bills, personal loans, and auto loans to student debt, revolving lines, utility payments, and even telecommunications bills. Mortgages may also be included depending on the credit agency used. All of this information is then put together into a single three-digit score called your credit score which ranges from 300 to 900 (with 900 being the best score you can get).

Credit, it’s a term that you tend to hear more often now than ever before. With Canadian families struggling under the weight of financial pressure more than ever before, loans are more and more commonly used to stave away landlords and bill collectors. Whether that be unforeseen childcare expenses for extracurriculars or an emergency medical expense that isn't covered by your OHIP plan or even potentially legal fees for an extended trial, loans are becoming more essential than ever for the average Canadian.

A loan is essential if you have a sudden expense that you need to cover. In fact, a recent Finder survey found that more than nearly two-thirds of Canadians have taken out a personal loan in the past. In this lies the advantage of personal loans as unlike with other credit such as bank loans or mortgages, the purpose of your loan isn’t disclosed.

Loans have become incredibly important in our modern daily lives of spending. Everything from overdue bill payments to unforeseen childcare expenses, numerous medical expenses not covered under your OHIP or even legal fees are all funds that cannot be ignored. However, at the same time, the funds required to pay off these necessary expenses can’t simply pop out of thin air.

Working with loans has been one of the most popular avenues to take in our age of mass consumerism that has resulted in the greatest of successes and the greatest of failures. As with anything, a moderate, healthy amount can bring you substantial gains but overstretching your boundaries can lead to equally great losses.

Not everyone can walk into the local bank and walk out with a loan. In times past, that left people who needed financing and were capable of repaying the balances with few alternatives. In recent years, some non-traditional lenders have stepped up and offered options to these borrowers who would otherwise be forgotten.

Mortgages have become a necessity in the life of anyone aspiring to own a home as real estate prices have soared across population-dense urban zones such as those of the Greater Toronto Metropolitan Area. Mortgage borrowing has reached an all-time high with 63% of Canadian families owning a home as of the 2016 Canada Census whilst the percentage of those who have paid off the mortgage on their principal residence has declined to 43% from 46% in 1999.