COVID-19 has led to an increased awareness of Financial Wellness
November 12 2020 - 6:00AM
People are checking their credit reports and scores more frequently
and are taking identity theft more seriously as compared to
previous years, according to a recent consumer survey conducted by
Equifax Canada.
COVID-19 has caused many people to take a closer look at their
financial situation, which is resulting in an increased
understanding about their relationship with credit. Within the last
12 months, 71 per cent of survey respondents have checked their
credit report, including 57 per cent in the last month. Younger
adults (under age 55) and Quebecers were significantly more likely
to have checked their credit reports on a regular basis. This is a
significant shift for consumers when considering 67 per cent of
survey respondents ‘rarely or never checked their credit reports’
according to a similar survey conducted by Equifax in 2016.
“The pandemic has clearly impacted everyone so much that more
people feel the need to assess their financial situation,” said
Rebecca Oakes, Equifax Canada’s AVP of Advanced Analytics.
“Checking your credit reports and obtaining credit scores is a good
place to start. It’s actually encouraging to see a higher
percentage of people checking their credit reports and scores now
compared to a few years ago.”
Equifax Canada data indicates that payment deferrals have been
utilized with over 3 million consumers taking a payment deferral
since the pandemic started. Thus far, 14 per cent of open mortgages
have had at least one month of payment deferral (approximately
900,000 deferred mortgages) and two per cent of open credit cards
have had at least one month of payment deferral (approximately 1.2
million deferred credit cards). About half of deferred mortgages
have had continued deferred payments for the past four months,
while credit cards have had a shorter deferral duration of one or
two months.
CREDIT SCORES ALSO CHECKED MORE FREQUENTLY
In addition to checking their credit reports, survey respondents
indicated they are obtaining their credit scores more frequently.
More than half (54 per cent) said they obtain their score at least
annually, as compared to 48 per cent a year ago. Younger adults
(those aged 18-34) are significantly more likely to check their
credit scores monthly versus those over the age of 35 (37 per cent
in 2020 vs. 27 per cent in 2019).
“COVID-19 has caused many Canadian households to develop a
better understanding of their finances on the fly,” said Keith
Emery, Co-CEO of Credit Canada. “Knowing what’s in your credit
reports and how credit scores are calculated are important steps
towards improved financial wellness. We always caution people to
avoid anyone offering to ‘fix’ your credit score. The best road to
a healthy credit score is making bill payments on time. It’s as
simple as that.”
STEPS TO PREVENTING IDENTITY THEFT
Equifax data collected and analyzed from its consortium of
lenders and industry partners also indicates that fraudsters and
identity thieves are more active and looking to take advantage of
the COVID-19 crisis. Since the pandemic began, the application
fraud rate has increased by 43 per cent and the deposit account
fraud rate rose by 53 per cent peaking in April and May
respectively.
Fortunately, survey results indicate that Canadians continue to
take the threat of fraud and identity theft seriously. When
comparing survey results to four years ago the numbers are trending
in the right direction. More people are taking precautionary steps
to help protect against fraud and identity theft.
2020 |
Steps Taken by Consumers |
2016 |
83% |
Review credit card statements on receipt for fraudulent
activity |
79% |
65% |
Check my credit report |
28% |
59% |
Avoid using public Wi-Fi |
47% |
54% |
Update security passwords |
43% |
“Identity thieves and fraudsters are quick to take advantage of
any crisis,” said Oakes. “COVID-19 has forced many people to work
online from home, buy their groceries online, and in a lot of cases
stay socially connected to friends and family online. Spending more
time online safely requires making sure you are taking steps to
help protect yourself. Checking your credit report regularly
remains one of the best ways to recognize and help protect against
fraud and identity theft.”
To learn more about fraud prevention and how credit works,
consumers are encouraged to visit Equifax Canada’s education hub.
The site offers insights on how different actions may affect their
credit scores and provides resources to help improve their
financial wellness.
*An online survey of 1,539 Canadians was completed between
September 11-13, 2020, using Leger’s online panel. The margin of
error for this study was +/-2.5%, 19 times out of 20.
About EquifaxAt Equifax (NYSE: EFX), we believe
knowledge drives progress. As a global data, analytics, and
technology company, we play an essential role in the global economy
by helping financial institutions, companies, employees, and
government agencies make critical decisions with greater
confidence. Our unique blend of differentiated data, analytics, and
cloud technology drives insights to power decisions to move people
forward. Headquartered in Atlanta and supported by more than 11,000
employees worldwide, Equifax operates or has investments in 25
countries in North America, Central and South America, Europe, and
the Asia Pacific region. For more information, visit
Equifax.ca.
About Credit CanadaCredit Canada is a not-for-profit credit
counselling agency providing free and confidential debt
and credit counselling, personal debt management, debt
consolidation and resolutions, as well as preventative
counselling, educational seminars, and free tips and tools in the
areas of budgeting, money management, and financial goal-setting.
Credit Canada is Canada’s first and longest-standing credit
counselling agency and a leader in financial wellness, helping
Canadians successfully manage their debt since 1966. Please
visit www.creditcanada.com for more information and follow us
on Facebook and Twitter.
Media Contact:
Andrew FindlaterSELECT Public
Relationsafindlater@selectpr.ca(647) 444-1197
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