As you all probably know, Credit Score is very important nowadays. It helps us not only get mortgages, lines of credit, and other types of loans, but also makes us understand how to behave correctly in terms of your financial situation.
So, what is credit score?
Your credit score is a number that illustrates your financial health at a specific point in time. It is also an indicator of how consistently you pay off your bills and debts. Your credit score is one of the factors lenders consider when qualifying you for a mortgage. A good credit score, for example, can help improve your chances of being approved.
WHERE CAN I CHECK MY CREDIT SCORE?
There are two Canada’s credit-reporting agencies, where you can find out your credit score:
-Equifax Canada http://www.consumer.equifax.ca/home/en_ca
-TransUnion Canada http://www.transunion.ca/
These agencies can provide you with an online copy of your credit score as well as a credit report — a detailed summary of your credit history, employment history and personal financial information.
If you find any errors in your report, notify the credit-reporting agency and the organization responsible for the inaccuracy immediately.
MY CREDIT SCORE IS LOW. WHAT SHOULD I DO?
Here are some tips on how to improve your credit score:
- always pay your bills in full and on time;
- pay off your debts as quickly as possible;
- never go over the limit on your credit cards;
- try to reduce the number of credit card or loan applications you make.
Once your credit score has improved, work with your mortgage professional to obtain a mortgage that works for you.
MORE INFORMATION
To find out more about credit scores and reports, visit the Financial Consumer Agency of Canada website:
http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/credit-5-1.aspx
There you may also download a free copy of the Understanding Your Credit Report and Credit Score guide. It provides with all the necessary information on how to obtain and understand your credit report and score, as well as how to build and maintain a good credit history.