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Your Credit Bureau score is based on
the following items:
Public record and collection items
Severity, frequency and recent occurrence of delinquencies
Number of balances recently reported
Average balance across all trade lines
Relationship between total balances and total credit limits
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.
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 behaviour 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.