What is a Credit Score and how can I check my Score?
A mortgage Credit Score or a Credit Card Score is an internal bank statistic, which calculates the loan loss ratio. Banks calculate this score or value based on customer behaviour and past statistics in order to assess their risk. In Canada, we have a rating that ranges from 300 (worst rating) to 900 (excellent rating).
What does the rating 300 to 900 mean?Primarily, your credit score indicates your level of financial ’trustworthiness’ as a customer. It shows the Bank the level of risk in giving someone a loan, as well as the quality of credit card you can apply for.Regarding credit cards, the following rating is applied: excellent credit score starts at 720-750 average credit score starts at 620-650 In our experience is every score under 650 is a bad rating. To get credit, we recommend you have a minimum score of 700+Checkout How can I increase my Credit Scoring.
How is a score evaluated?A scoring consists of 4 areas: Payment History – 35% Current Amounts Owed – 35% Newly Opened Accounts & Credit Inquiries – 20% Length of Credit History – 10%
Where can I check my Credit Score?Everybody has a legal right to obtain a copy of their credit score and I recommend to check it twice a year and at least once a year. If anything looks wrong, directly contact one of the comapanies below and ask for a review and correction. Attached are both relevant service companies in Canada.
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Phone Number 1-800-465-7166 Website www.equifax.ca
Trans Union of Canada
Phone Number 1-866-525-0262 Website www.tuca.ca