The Credit Score StoryOctober 20, 2015 9:04 am
A credit score in Canada is a three digit mathematical equation, which represents a person’s credit risk and credit worthiness to a prospective lender.
The information collected for this score is based on many variables, and can be positively impacted by actions that demonstrate optimal credit responsibility and adversely, if credit is not managed appropriately.
The scores usually range from 300 to 900, with the latest being the best. Lenders and industry professionals refer to the score under many different names, such as Beacon, Empirica and FICO.There are many things you can do to maintain a great credit score:
- Pay your bills before they are due.
- Limit spending of non essential items to 15-20% of your disposable income.
- Own at least one credit card.
- Limit total amount of credit applications per year. Apply only if necessary.
- Review your credit report at least twice a year and correct any errors.
- When seeking credit work with a reputable broker, they may shop for the best deal while limiting the amount of credit reports pulled.