A Dummy's Guide to your credit score

A Dummy’s Guide to your Credit Score


Your credit score is a snapshot of your credit history. Lenders use it to decide whether or not to lend you money.

Some of the information that lenders will see about you:

  • Personal information (name, address, phone numbers, alias)
  • Credit information (who you have accounts with- credit cards, loans)
  • Banking information (where you bank)
  • Collection information (Your accounts that are at a collection company)
  • Consumer statements (Account statements)
  • Credit report inquiries (Everytime you apply for credit)

Here is a breakdown of how they come up with your score:

  • 35% Payment history- based on your late and on time payments over the last few years
  • 30% Current Debt Load- How much money you already owe, and are your credits at or close to their maximum balance?
  • 15% Age of accounts- accounts open longer are better
  • 10% Type of credit- different accounts affect your score in different ways
  • 10% Credit inquiries- It’s not good to apply for credit frequently- Your score drops whenever someone looks at your report.

How Long will Information stay on your report?

Generally, The following items will be removed after 5-7 years:

  • Credit transactions
  • Judgements
  • Collections
  • Secured loans
  • Bankruptcy

After 2-3 years, you will see the following removed:

  • Consumer proposals
  • Credit Councilling

Each account on your report is given a Credit Rating. These are called “R” ratings:

  • R0- Too new to rate
  • R1- Pays within the 30 day due date
  • R2- Pays after due date, but not past due
  • R3- Pays more than 60 days late
  • R4- Pays more than 90 days late
  • R5-Account is 120 days past due
  • R7-Making special arrangements to pay of debts
  • R8-Repossession of merchandise (voluntary or involuntary)
  • R9- Bad debt- Sent to collections
  • I- Installement Credit
  • O- Open Credit


Here are a few things to consider:

  • Paying late has a huge impact on your score
  • Keep balances at less than 75% of limit
  • Avoid multiple credit loans
  • Paying bills in full
  • Credit Score ranges from 300-900: The higher, the better



There are 2 agencies to obtain your credit score/report








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Rose Sicoli

Rose Sicoli

CENTURY 21 Professional Group Inc., Brokerage*
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