Jeanette Miller's Home Trends

Jeanette Miller

WHAT’S IN A CREDIT SCORE? Having good credit is something a lot of Canadians struggle with. Not just maintaining good credit, but understanding what affects a credit score and how important it is. Your credit score is a part of your credit report, which you can access for free from either Equifax or TransUnion, Canada's two credit bureaus, once a year. The score itself is a number between 300 and 900 that helps lenders determine how much of a risk you are and thus if they should lend you money in the form of a loan or mortgage, and if so, how much interest you should be charged. Your credit score can also impact your ability to rent a property or even get hired for a job. The higher your credit score, the better. Scores between 660 and 724 are considered “good,” whereas scores between 725 and 759 are “very good,” and scores above 760+ are “excellent.”There are five factors that go into your score: payment history, credit utilization, credit history, credit mix and hard credit inquiries. Various lenders (and the credit bureaus) weigh each factor differently, so your credit score may differ slightly from what you see when you pull it versus what your bank sees, for instance. For more information on credit scores including how to improve yours, head to https://www.canada.ca/en/financial consumer-agency/services/credit-reports-score/credit-report-score-basics.html .

info@jeanettemillerrealestate.com