Most everyone knows that when it comes time to buy or lease a house a credit report will be pulled for either the lender or landlord. We have all heard about the “credit score”, the magic number that will sum us up and determine our credit worthiness. But what exactly does it mean?
Your credit score can range from 300-900, the average credit score in Canada is around 650. The higher your score the better, particularly when it comes to mortgages. People with lower credit scores may not qualify for these historical low interest rates we are seeing. However, don’t be discouraged if your score is low. There are many easy ways to improve your score, and plenty of financing options available.
A few quick tips on keeping a good credit score:
- Pay your bills on time
- Don’t max out credit cards
- Borrow what you can afford
- Avoid multiple inquires
- Review your file regularly – nearly 80% of reports contain at least one error!
You can obtain a copy of your report for free from Equifax or Trans Union, there is a small fee to find out your number.
Read the full article “Understanding Your Credit Report” for more information on improving and monitoring your credit.