Credit Scores & Reports

A credit score is a pretty important thing.  It will determine if you can borrow to buy a vehicle or home, and will influence the amount of interest you will pay on that loan.  To the lending institution, the credit bureau (or report) tells them if you are financially responsible, if you make your payments on time, and if you are a good risk or a poor risk for a loan. The credit score ranges from 300 to 900, with 900 being perfect.  720 is considered good, while scores below that usually require more collateral and can pay higher rates.  Most financial institutions will not lend at all when a score is below 620.

Credit reports from any of the major reporting companies show a history of your credit use over as much as a ten year period. A report begins with identifying information, including your name and social security number, current and former addresses. Next is a list of creditors and your payment history with them, and ratings of your credit use.

Look carefully at each part of your report and note any errors. Incorrect demographic information can make it impossible for your own report to be found. This can cause real problems when you apply for a loan, an insurance policy, or in some cases a job.


Creditors are listed by credit type, creditor name, and by account age, with open, current accounts shown first. The business name in the report may not be the same as the name it uses in business with you. Other information listed under the creditor includes the account number, how long the account has been open, the total amount of credit available to you, and your payment history for the past one month, three months, one year, and more. You might not find all creditors listed and information may be inaccurate.

Which creditors are included is important. Mortgages and car loans are telling indicators of how you manage large loan amounts over time with a fixed payment amount. Credit cards and other revolving credit show how much of the credit available to you is used as well as how consistently you pay. Landlords and utilities might report information to the credit bureaus, although many do not. Student loans will be listed.

Ratings of your credit use are particularly important. Using all of the credit available to you and having many new accounts or inquiries can damage your rating. Higher ratings mean you are a better risk and will both find it easier and less expensive to get additional credit. Low ratings may be the result of a poor or short payment history or having few creditors.

Contact the credit bureau to correct any information that is incorrect on your report. Be sure that any closed accounts are reported as closed, the ages of accounts are accurate, and the amounts owed are current. Your report will explain the procedure for getting corrections made.

You can also go to Equifax Canada to get your own credit report.  Make sure you check over the information thoroughly as reporting errors do happen and they can mess up the accuracy of your credit score.  Equifax Canada
Jerry