Credit Score

Your Credit Score


A strong credit score is imperative to having a strong financial standing. This will affect how much you are allowed to borrow, whether it is a mortgage, car loan or whatever. It is very important to look after your credit rating.

You are given points towards your credit score to a maximum of 900 points. Your points or credit score give lenders an idea of how well you manage your finances. For example, in order to get a mortgage at a lower cost you would need a rate of over 660.

Credit Report

A credit report is kept on each person who borrows right from when they first apply to borrow money or get their first credit card. Each payment is recorded. In Canada, your credit file is maintained by either Equifax Canada ( or by Trans Union Canada ( You have the right to see your credit file. It is a good idea to contact one of the companies before you apply for a major purchase to make sure your file it correct.

Credit Score how it is rated

You are rated on how well you pay your bills. For example: if you pay your visa, which is considered a revolving credit, on time each month then you will receive a R1 rating, if you pay within 30 days then an R2 rating and R3 means you pay after 60 days. Also, if you pay off your visa each month and don’t run it up this goes well for you. The best rating is an R1 and that is what you are striving to maintain.

Best ways to get a good score

-pay all your bills on time

-don’t run up your credit card to within 50% of the limit (this shows good financial management)

-get 2 lines of revolving credit for at least $2,000 each

-use your lines of credit each month and pay then off

-using cash doesn’t show the lenders that you can use money (there is no money trail)

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Shirley Arthur

Shirley Arthur

Sales Representative
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*
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