CanLaw recommends monitoring your credit report and score twice a year

WHAT IS YOUR CREDIT SCORE?

The lower the score, the worse your credit rating

You can obtain your credit report free of charge from Equifax and Trans Union. You should monitor it twice a year for changes and to protect yourself from errors and identity theft

CanLaw Will Find You a Consumer Protection or Money Problems  Lawyer

Use CanLaw's Free Lawyer Referral Service When You Need a Lawyer

Your Credit Bureau score is based on the following items:

  • Payment History
  • Public record and collection items
  • Severity, frequency and recent occurrence of delinquencies
  • Outstanding Debt
  • Number of balances recently reported
  • Average balance across all trade lines
  • Relationship between total balances and total credit limits
  • Credit History
  • Age of oldest loans
  • Number of new loans
  • Pursuit of New Credit
  • Number of inquiries and new account openings in the past year
  • Amount of time since most recent inquiry
  • Cash advances are often a sign that you are in financial trouble and can lower your score.
  • Types of Credit in Use

 

 

Your score is based on all the credit-related data in your credit bureau report, not just negative data such as missed mortgage payments or bankruptcies.

 

Other factors may also considered by lenders.

 

Usually though, if your score is too low, you are automatically rejected regardless of other factors.

 

 

 

WHERE TO GET YOUR CREDIT REPORTS

Equifax Canada Inc.

Consumer Relations Department

Box 190 Jean Talon Station

Montreal, Quebec  H1S 2Z2

Tel: ( 514 ) 493-2314

1 800 465-7166

Fax: ( 514 ) 355-8502

 

How can You Increase your score?

 

  • Credit Scores consider your credit history over several years, making it difficult to increase your credit score in the short run. Over the long term you can improve your credit-worthiness by:
  • Paying your bills on time and in full. Late payments and collections can have a serious impact on your score.
  • Do not apply for credit frequently. Having a large number of inquiries on your credit report can worsen your score.
  • Reduce your credit-card balances. If you are "maxed" out on your credit cards, this will affect your credit score negatively.
  • If you have limited credit, obtain additional credit. Not having sufficient credit can negatively impact your score.
  • Reducing your total indebtedness
  • closing unneeded credit accounts
  • avoiding bankruptcy and foreclosures.
  • When you're planning a big purchase like a new car, home, or a dream vacation, it's important to know what your lenders know.

Trans Union and Equifax use different methods of computing your credit score.

 

Your credit score will be different, sometimes radically different, so you need to monitor your score with each of these companies.

 

Some lenders use one of these scores, while other lenders may use an average score.

WHERE TO GET YOUR CREDIT REPORTS

Trans Union

Consumer Relations

709 Main Street W

Suite 3201

Hamilton, On L8S 1A2

Tel: 1 800 663 9980

Fax: ( 905 ) 527-0401

Is new business worth $250 a year?

Your Credit and Credit Scoring

 

Your Credit Score is based on your credit history, income, outstanding debt and debt utilization over the years, access to credit, and other indicators of your financial behavior to determine how likely you are to pay your bills on time, or if at all.

Credit Scoring is the tool used by virtually all lenders today.

Your credit score condenses your credit history into a single number ranging between 300 and 900.

When you apply for a credit card, a mortgage, a loan for a home or a car or other major purchase, the lender will look first at your Credit Score.

The higher your credit score the more likely you are to be approved for loans and receive favourable rates.

A credit score of 620 or lower is usually automatically rejected sending you to the private market, where rates are higher.

No one can repair a bad credit score. If that is your case, you will have to work hard to improve it and it can take years.

Bankruptcy is not a problem, it is a solution