Equifax Canada data indicates COVID-19 financial crisis is not over for consumers, small businesses
Analysis indicates growing concern for uneven K-shaped recovery
May 27, 2021 08:50 ET | Source: Equifax Canada Equifax Canada Anjou, Quebec, CANADA
TORONTO, May 27, 2021 (GLOBE NEWSWIRE) Equifax Canada has released new data indicating that COVID-19 has had a varying impact on consumers and businesses. Many are hurting financially, whereas others have seen improvements to their financial standing.
On average consumers have seen their credit card balances decline during the pandemic and the lower debt levels have combined with fewer missed payments to generally boost credit scores. For businesses, however, decreased demand for credit presents a red flag most notably in the last three months of 2020. Credit inquiries dropped by over 60 per cent in the oil and gas sector, declined by 48 per cent in construction and retail activity
Fewer Canadians are missing monthly payments
The first big shift in Canada’s credit card behaviour is making payments on time. In 2019, Equifax Canada found that 850,000 Canadians were delinquent on payments. In 2020, however, that number dropped by almost 30% to 600,000. Likewise, with more Canadians making payments on time, the number of Canadians who feel “on track” with their credit cards increased from 600,000 in 2019 to 700,000 in 2020.
Higher credit scores
Perhaps the biggest takeaway from the report is the higher credit scores among Canadians. Around 50% of Canadians reported a higher score in 2020, up from 45% in 2019.
And the group that saw the most drastic improvement? Believe it or not millennials. Yes, according to Equifax, younger age groups freed up their credit lines and posted the most changes year over year. Way to stick it to the stereotypes, millennials.
Former Fairstone VP Joe Carusella, Joins FIX4 s Executive Team on a Mission to Transform Car Repair Loan Market
News provided by
Share this article
Share this article
TORONTO, May 6, 2021 /PRNewswire/ - New Canadian retail finance company FIX4 Capital is pleased to announce today the appointment of Joe Carusella to Vice President, Corporate Development/ Partnerships. Carusella brings over twenty-five years of experience in retail finance and the automotive industry.
Joe will develop market positioning and drive growth for FIX4 in Canada as well as seek partnership opportunities that will expand FIX4 s National footprint. We are excited to have Joe join the executive team said Tave Della Porta, Chief Executive Officer of FIX4 Capital. Joe is a proven senior executive and a strong strategic thinker. His 20 years plus experience in automotive retail finance, and his skill set for leading star operations and business development will no doubt add bench strength to our operatio
It goes without saying that we are all at risk in this electronic age of being exposed to financial fraud. Some people more so than others. In some situations, financial fraud starts by unknowingly providing your personal information. This can be done through telephone calls, text messages and emails.
Earlier this month, we wrote two articles that highlight how to deal with unknown calls (Be skeptical of unknown callers) and unsolicited emails (Never open or click links in unsolicited emails). In addition to being prepared for these types of communications, we feel that our clients should also know how to monitor against financial fraud occurring from things outside of their control.
As home sales rebounded nationwide from March-April lows, average debt per person is now at $73,532, up 2.2% from the same time last year. This trend is in sharp contrast to other forms of credit like credit cards, auto loans and lines of credit, which have fallen in use during the pandemic. “Mortgage activity has withstood the headwinds from COVID and showed the earliest signs of recovery,” said Rebecca Oakes, assistant vice president of advanced analytics at Equifax Canada, in a statement. What also appears to be a clear trend is that Western Canada is more in debt than the rest of Canada. While non-mortgage debt loads are down across the board, Equifax found that the western region average debt in Q2 ($25,063) significantly outpaced that of the eastern region ($22,782).