Usually it’s lowered to boost the economy so people are encouraged to borrow money (interest rate is low) and use it.
Who is happy when interest rate gets lowered?
- debt holders (but credit card interest doesn’t get lowered usually…)
- bond holders (because bond price has an inverse relationship with interest rate)
- People getting or renewing a mortgage (because mortgage rates follow the benchmark rate)
- People getting a loan
This cartoon is on sale at My Store.
According to this huffington post article, credit check on job applicants are increasing in Canada (but being clamped down in US)
Other situations where you could become that deer in the headlight if you have bad credit:
- applying for a loan/mortgage/credit card
- applying for a rental (“Credit Check/References required”)
- obtaining new cell phone/utilities (you might have to pay a deposit if you don’t have a credit history / or have a bad credit)
Keep your credit score good by regularly monitoring & taking steps to make it better.
You can get your credit report from major credit reporting agencies like Equifax & Transunion (in Canada & US).
Above cartoon is available for sale here (under different licensing options.)