Your credit score is a three-digit number that lenders use to predict your creditworthiness. Credit reporting companies calculate your score based on your payment history, how much you owe, how long you’ve had credit and how often you apply for new credit. In general, the higher your score, the less likely you are to become delinquent on credit. If it’s above 650, you’ll probably qualify for a standard loan. If it’s lower, you may have trouble getting new credit.
Because your credit score and credit report are constantly changing, it’s important to review them on a regular basis, at least once a year. Since there are two main credit reporting companies in Canada—Equifax and TransUnion—it’s a good idea to check your records with both companies. This helps you identify and correct any inaccurate information, detect any fraudulent activity and gauge your overall credit health.
If you’re planning on applying for a mortgage, it’s especially important to check your report a few months in advance. If your credit score is under 650, your mortgage options will be reduced, and you’ll pay a premium on your loan -- perhaps as much as 2 to 3 percent more than borrowers with excellent credit. You may need to provide more documentation than those with higher scores, including a formal appraisal of your home’s value.
Still wondering what your credit score is and how to improve it? As an added value to our subscribers, we’ve put together a special Free Credit Repair Guide titled, “12 Simple No Cost Methods to Repair Your Credit.” To get your free copy of this informative guide, call us today at: 1-800-685-1029 ext. 300. Call now while supplies last!
