Credit scores in Canada are a huge part of a person’s financial credibility. If you have a strong credit score, you can easily apply for rentals, loans and rewards credit cards without having to worry about your credit score hindering your chances of being approved. In Canada, a credit score can grant or hinder your access to several goods and services. Credit scores ranging from 660-900 are good to excellent scores.
Credit bureaus, such as, Equifax and TransUnion calculate your credit scores and update them frequently. Credit bureaus use your personal information in your credit file to calculate your scores. Factors used to calculate your credit score include the following:
You can easily view your own credit score through Equifax and TransUnion. A credit check done by you won’t affect your credit score and is called a soft check.
On the other hand, a credit check pulled by a lender or credit issuer can result in a hard check and can slightly lower your score. Hard credit checks only take place when you apply for a mortgage, loan or credit card. Usually, hard credit checks need authorization by the account holder before they are processed.
Understanding your credit score
Here’s a breakdown of credit scores in Canada:
If you have a credit score that you’re unhappy with, worry not! You can slowly rebuild your credit by following good financial habits.