Credit Score Canada

Your lender is going to use your Credit Score Canada information to determine whether or not you are qualified to borrow money, any time you apply for a loan or a credit card.  Your credit score is based on your past history of borrowing and paying back money; basically it is a measure of the likelihood that you will pay back your loan.

Before you apply for a loan for a new car, a new home, or a line of credit from your local bank, it is a good idea to get a copy of your FREE Credit Score Canada Report.

 

A Credit score Canada or Canadian Credit Report offers several benefits:

Spot problems before you apply for credit

Having access to your Credit Score Canada Report allows you to find errors that may negatively affect your ability to obtain a loan. Each time you receive your free credit report, look it over carefully to make sure there is no unauthorized activity and that all of your payments have been reported accurately by your creditors. Avoid unpleasant surprises such as calls from debt collectors or rejected loan applications by keeping close track of your debt.

Improve your credit score Canada rating

When you receive a copy of your credit report, you will be able to find out where you have slipped up in the past. If you have late payments and outstanding loans that you had forgotten about, paying them off as soon as possible can help to boost your credit rating and make you a better lending risk when you need to borrow money.

 

Manage your finances more effectively

With a free copy of your credit report, you get a good overview of exactly where you stand financially. Having a record of your loans, credit cards, and other debts all in one place can help you to determine how best to budget your monthly income and expenses in order to reduce your debt load more quickly, thereby increasing your credit rating.

Prevent identity theft

Identity theft is a rapidly increasing problem that can affect your life for years to come. With a copy of your credit report, you can quickly discover whether someone else has been using your personal information to borrow money or open lines of credit in your name. If you find that there has been illegal activity on any of your accounts, you will need to contact your creditors as quickly as possible in order to report the problem and work on getting it resolved.

 

In today’s difficult economy, banks and other lenders are much stricter than in the past when it comes to offering credit and approving loans. You can improve your financial situation and increase your chances of getting the loans you need for your important projects by ordering a free copy of your credit score Canada information. For a limited time offer, you can get your FREE credit score from 3 major credit bureaus for the first 30 days.

Things you need to know about Credit Score Canada

In Canada, things are slightly different. While it also has three major credit bureaus (Equifax, TransUnion, and Experian) that measure each citizen’s credit score, Canada uses Social Insurance Numbers (SIN) to track each citizen’s credit score.

Credit Score (Canada) ranges within 300 and 900, and is composed of:

10% New credit inquiries

10% Variety of credits

15% Credits’ durations

30% Available credit and amount payables

35% History of payments made

On the other hand, Canada’s Office of Consumer Affairs (CCOA) indicates Credit Ratings with:

“O” Open credit line.

“I” Installment credit.

R9 Bankruptcy, moved without proving new address, collection, bad dept.

R8 Involuntary or voluntary repossession.

R7 Special arrangements made in paying debts.

R6 This rating does not exist.

R5 Not yet rated R9, but account is 120 days overdue.

R4 Pays (or paid) in more than 90 days from payment due date, but not more than 20 days, or four payments past due Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due.

R3 Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due

R2 Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due

R1 Pays (or paid) within 30 days of payment due date or not over one payment past due.

R0 Approved but not used; too new for ratings.

 

It is crucial to distinguish the differences between the 3-digit credit score and 2-digit Credit Rating. Although each bureau use Fair Isaac Credit Organization (FICO) formula to compute credit score, Canada Equifax calls it the Beacon, Trans Union has the FICO, and Experian uses Fair, Isaac Risk Model.