Credit Reports & Credit Scores

Your Credit Score and your Credit Report 

Your annual credit report is a key factor in being approved for a mortgage. It shows your history of bill payments and whether they were on time or not. Your credit score (Beacon score) on the other hand is a number between 300 and 900. The higher it is the better. 

Canada has 2 major credit bureaus:

Trans Union (1-800-663-9980)

Equifax (1-800-465-7166)

You can obtain your free annual credit report from each of these bureaus by mail or on line for a small fee if it includes your score. 

Is your credit score low? Fix it:

  1. Play catch-up with any missed payments
  2. Make your credit card payments on time every month
  3. Focus on paying down your credit card balances
  4. Borrow the amount of money you can afford to repay
  5. Do not apply for new loans or credit cards. When these companies conduct an inquiry about you, this can lower your score.
  6. Keep your balance on your cards below 33% of your limit, if you can
  7. The lower your balance on your cards, the higher your score
  8. If your lender lowers your available credit, this may affect your score
  9. The older your account is, the better your score
  10. Do not close unused accounts. This may lower your credit score because it erases any previous credit history with that account. 

People with a lower credit score may end up being denied mortgages from the major financial institutions like the banks, or may end up paying higher interest rates. Keep your credit clean.

Norma Manfrini

Norma Manfrini

Broker
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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