What is a credit score?
How do money lenders decide how creditworthy you are? Your credit score can be an important factor. Find out how your credit score is determined.
Why are mortgages so expensive in Canada?
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A credit score is a three-digit number (from 300 to 900) that reflects how well someone manages credit—for example, whether they make loan payments or pay credit card bills on time. The higher your score, the more creditworthy you are considered to be. Your score is based on your credit report, which is stored and updated by Canada’s national credit bureaus, Equifax and TransUnion, based on your financial actions. Lenders, landlords and other parties look at your credit report when deciding if they’ll lend you money, lease you an apartment, hire you, etc. Your credit report can also affect your interest rates on loans.
Example: “Peter was late on a few car payments last year, and it really hurt his credit score.”
Read more on credit scores:
- How to improve your credit score
These tips will help you do it as quickly as possible - Credit scores and credit reports: What newcomers to Canada need to know
As a newcomer to Canada, if you plan to borrow money or apply for a credit card, it helps to understand how credit scores and credit reports can affect you. - Upwardly mobile
What do cellphones have to do with credit scores? More than you might think. - Applying for a credit card: What you need to know
Learn how to apply for a credit card, research the best credit cards for your needs, improve your credit score (and not worsen it!) and more. - 6 things you didn’t know could be hurting your credit rating
Collection agents aren’t knocking at your door, so that means you’re financially fine—right? Not necessarily. Read on for ways you may be tripping up, and how to fix them. - Canada’s best credit cards for people with bad credit
If you want to improve your credit score, you’ll have to show you can handle credit responsibly—and, used properly, the right credit card can assist in rebuilding bad credit. - How to calculate your debt-to-income ratio—and why you should know this number
How would you assess your financial situation? Check out this guide to figuring out your debt-to-income ratio and the importance of knowing your DTI ratio.
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