UNDERSTANDING CREDIT
The credit score is a numerical rating. between 300 and 900 that assesses your creditworthiness as a borrower. In Canada, this score is calculated by considering various factors such as your payment history, credit utilization, the length of your credit history, and other financial elements.
The two main credit agencies in Canada, Equifax and TransUnion, are responsible for compiling this information.
Your credit score is crucial for lenders. It helps them assess the risk of granting you a loan. A high score means you are considered reliable, while a low score may be seen as a sign of increased risk.
It is really important to understand your credit score and know how to improve it. This will make it easier for you to get the loan you want and allow you to secure better interest rates. By monitoring your score, correcting any errors in your credit report, and adopting good financial habits, you can maintain or improve your credit score, thereby strengthening your overall financial health.