Credit Scoring in Canada
If you are trying to manage your personal finances, it is important to know what goes into your credit report, who submits and gathers the information, and how your credit score is formulated.
Your credit report is a snapshot of your credit history as reflected by the financial information gathered from the two major credit bureaus, Equifax Canada and TransUnion Canada. Taking out a loan is a big investment, and knowing how financial institutions grade your credit report could make the difference in securing that next loan.
Requesting Your Credit Report
You can request a free copy of your credit report once a year from the two major credit bureaus in Canada. Your free copy will be delivered by mail and will not contain your credit score. Alternatively, you can request a copy online and get an instant report with the option to include your credit score, but it will cost you.
Understanding Your Credit Score
Credit scores range from 300-900; the higher the number, the better the score. The health of your score depends on a number of factors.
Information that makes up your credit score:
- Credit card payments
- Telecommunications accounts (mobile phone and internet bills)
- Liens and repossessions
- Delinquent accounts
- Debts sent to collections
- Negative banking information
- Inquiries from lenders and others who request your credit report