This discussion on how our credit-worthiness is assessed by the banks should also make us reflect on how they and other product sales firms view our savings as their profit center and structure their ‘financial advice’ accordingly. North Americans have been buying debt and investment products from the sales force to their great detriment over the past two decades. The financial sales side is allowed to put maximizing their profits ahead of our best interests, and hence taking their ‘advice’ on what to buy is a major error. People learn this cycle after cyle, once capital tides recede and buyers are left holding losses, while the sales firms turn to taxpayers for bailouts, and our financial resilience is further diminshed.
Canadians have been obsessing over their credit score in recent years, but is it a healthy habit? Here is a direct video link.
Also see Scott’s MoneySense article: Canada’s credit score obsession is causing people to make bad financial decisions.
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