The CEO of a lending company is hoping consumers in Saskatchewan will take time to calculate their credit score.
Andrew Graham, co-founder of Borrowell Inc., said a credit score — a number ranging between 350 and 900 — is the first step towards fixing financial problems for consumers who find themselves in debt.
A credit score is used by banks to determine if someone is eligible for a loan and at what price.
“I would say anything above 650 is a good credit score,” Graham said.
In June, Borrowell Inc. announced a Canadian first: free access to credit scores via the company’s website.
READ MORE: Consumer debt, loan delinquency rising in Saskatchewan
Graham said consumers in Saskatchewan should be especially wary of their credit scores, given the rise in consumer debt in the province.
Both Saskatchewan and Alberta have been hit hard by slumping commodity prices and subsequent layoffs.
“I think unemployment is a big driver when it comes to use of credit and whether people are able to repay,” he said.
“So if you lose your job, you may be much more likely then to take out credit.”
READ MORE: TransUnion report: Auto loan delinquencies rise in Alberta, Sask.
In the past year, Saskatchewan was second only to Alberta in increasing debt delinquency rates. From 2015 to 2016, the 90+ deliquency rate in that province rose by 14 per cent.
READ MORE: More people skipping out on credit card bills in oil-producing regions
To boost a credit score, Graham suggested paying bills on time and looking at consolidating loans to avoid hefty penalties.
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