Canadian Credit Card Rates, Reviews & Resources
Your credit score is a numerical representation of the quality of your credit at a specific point in time. Lenders use credit scores to help determine the risk level of each potential borrower.
The two Canadian credit bureaus, Equifax and TransUnion, use a credit score scale between 300 and 900. High scores indicate a better credit profile, and lenders will view such individuals as low risk borrowers.
Lenders may access several pieces of data, such as a credit score and credit report, when making a decision on a credit card or loan application. Since this is the information lenders use to determine your creditworthiness, it's a good idea to know where you stand.
Accessing your credit report by mail is free, however credit scores are not free. You can purchase your score from the two Canadian credit bureaus, TransUnion or Equifax, for a fee. Experts recommend checking your credit report and score every year.
Get a free Canadian credit report and score when you sign up for a FREE 7 day trial of Privacy Protection Plus.Lenders use credit scores to assess risk. For example, a person with account defaults and numerous late payments will typically have a low credit score. If the person applies for a new loan or credit card, a lender might view him as too risky and decline the application.
For those with excellent credit scores, lenders will bend over backwards to give out loans. Since people with high credit scores are viewed as low-risk, the banks will try to entice these customers with low rates, or other favorable terms.
If you have negative items on your credit report and have a low credit score, there is no quick-fix. Only through responsible use of credit, and time, will your credit improve. Here's a few tips that may help your credit score: