|Score Range||750 - 840||660 - 749||620 - 659||Below 620|
A Credit history is created when you borrow money or apply for credit. They are maintained by Canada's major credit-reporting agencies: Equifax Canada and TransUnion Canada. You may obtain your credit report for free by contacting them. This credit report/history is one of the tools lenders use when approving you for a loan/mortgage.
Credit companies (including banks, finance companies, credit unions, retailers) send ongoing updates to these credit reporting agencies about your financial situation such as:
Payment History - Recency, late payments (>30 days), collections, judgments, and bankruptcies. A single 30-day late payment can drop your score 15-20 points.
Current Debts - How much you currently owe compared to your credit limits, number of creditors, maxed-out available credit.
Age of credit - The longer your credit history, the better; preferably >1 year.
Type of Credit - loans, credit cards, and revolving credit accounts have different impacts.
Credit Enquiries - Numerous credit applications/inquires in a short time have a detrimental effect.
Top Credit Score killers: Bankruptcies, judgments, collections; Payments over 30-days late; Maxing out credit cards (>75% of credit limit)