How will New Interest Rates Impact Your Credit Score?

On Wednesday 12th July, Bank of Canada (BoC) took a highly anticipated step and raised its key interest rate from 0.5% to 0.75%. Economists are expecting that there is more to come, interest rates will probably rise more in October. It was the first rate hike since September 2010. There was no hike in interest rates in last 7 years though there were some fall downs. Soon after the BoC’s announcement, other major Canadian banks have also announced a rise in interest rates. From car loans to other quick loans Calgary, this move will have major effects on all types of borrowings. Canadian banking sector is setting a trend of high borrowing costs in the country.

The Bank of Canada perceives a good momentum in the economy and expecting inflation like situation by the next year. They believe that this step will prevent the problem. This move will severely impact the borrowers whose loans are linked with big bank key rates. If you will owe money, then the hike in interest rate will most likely to make you pay more. Moreover, people who have borrowed money with variable interest rates have to bear much burden while repaying their loans than the ones who have fixed interest rates. Such strict finance implications will surely affect your credit score and thus it can become difficult to borrow money.

With this hike and one more changes to come in near future, you need to revise your mortgage and loan arrangements. The rise in interest rate will definitely have a positive impact on the economy of the country but in the current scenario, this implication can burn a hole in your pocket. However, this should not stop you from taking a loan for your needs.

For all your financial needs you can rely on an independent finance company namely CA Financial. The company allows you to take a loan up to $25,000 instantly, with easy and fixed installments. All credit score, including bad ones, is accepted by CA Financial. They offer you both personal and business loans and they are completely transparent with their policies and term.

About CA Financial:

CA Financial is an Alberta Canada based finance company, providing instant and easy loans to Canadian citizens. No matter whether you have bad credit car loans Calgary or any other bad credit history, CA Financial is ready to provide you financial aid.

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