Credit Score

Credit score is a kind of assessment of financial reliability. It is expressed as a number and reflects how effectively we manage credit, repay debts, and adhere to financial obligations.

In Canada, credit scores hold significant importance as they affect the ability to obtain loans, mortgages, housing rentals, and even the interest rates on credit.

It's crucial to maintain a high credit score, so we recommend paying attention to these five factors that influence it:

1)Payment history: Timely payments on loans and bills play a crucial role. They help strengthen your credit history and boost your score.
2)Credit utilization: Smart credit management is essential. You should not use your entire available credit line, as this can lower your score.
3)Length of credit history: Long-term financial relationships contribute to an improved credit score. Consistency is key to success.
4)Types of credit: Diversity in credit types (e.g., credit cards and mortgages) also influences your score. It shows that you can handle various forms of credit obligations.
5)New credit applications: Frequent applications for new credit can raise concerns with credit bureaus. Think twice before submitting multiple applications.