Understand and Maintain Your Credit Score In Canada

Your credit score is an essential factor that lenders use to determine your creditworthiness when you apply for a mortgage, loan or credit. A good credit score can help you get approved for loans and credit cards at a lower interest rate, while a poor credit score can make it challenging to access credit. Read this simple guide on how to check and read your credit score in Canada.

Step 1 Choose a Credit Reporting Agency

There are two main credit reporting agencies in Canada: Equifax and TransUnion. You can choose to obtain your credit report from either agency or both. Both agencies offer similar credit reporting services, but the information contained in their reports may differ slightly.

Step 2 Request Your Credit Report

To request your credit report from either agency, you can visit their website and fill out an online request form. You will need to provide your personal information, including your name, address, date of birth, and social insurance number. You may also need to answer some security questions to verify your identity.

Step 3 Review Your Credit Report

Once you receive your credit report, it’s essential to review it carefully. Your credit report will contain information about your credit history, including your credit accounts, payment history, outstanding debts, and credit inquiries. Check for any errors or discrepancies and report them immediately to the credit reporting agency.

Step 4 Understand Your Credit Score

Your credit score is a three-digit number that reflects your creditworthiness. A higher credit score indicates that you are a lower credit risk and vice versa. Credit scores range from 300 to 900, with a score of 650 or higher considered a good credit score. Your credit score is based on several factors, including your payment history, credit utilization, length of credit history, types of credit, and new credit.

Credit Scores

Checking and understanding your credit score is essential to your financial well-being. By following these simple steps, you can obtain your credit report and learn how to read your credit score in Canada. If you find any errors or discrepancies in your credit report, be sure to report them to the credit reporting agency immediately. By maintaining a good credit score, you can improve your borrowing power and access credit at a lower interest rate.

For more tips and tricks to help improve your credit score and qualify for the best home borrowing solutions, contact the team at LendToday.ca.

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Credit Score & Credit Bureau FAQS

Below are some tips to help you better understand what mortgage lenders look for on your credit report and some common questions we get asked.

There are two main credit reporting agencies that are relied upon by many banks, credit unions and mortgage lenders.

  1. Equifax
  2. Transunion

At the time of writing this, mortgage companies will only rely on two credit reporting agencies. Although companies like Credit Karma and Borrowell have great tools and have a lot of data on your credit history; they are just not as equipped yet to provide the details that banks and the like look for.

Even if your credit score has been impacted there are still bad credit mortgage solutions available in today’s market. Our team can do the heavy lifting to help you discover what your options are.

While there is no secret recipe to repair credit, we often see credit scores heal within 6-12 months on average. Everyone has different circumstances financially so it is important to know that there is no specific timeline or deadline. If you are trying to get your credit back on track and ensure a brighter future for your family – consult with a specialist.