‘Credit’ is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.  

In Canada, credit scores range from 300 (just getting started) up to 900 points, which is the best score. According to most lender and insurer guidelines:     <600 is considered high risk; unlikely to get loan without help   ≥650 is considered good   ≥750 is deemed excellent 

The most widely used reporting company is Equifax, with Trans Union becoming more widely accepted. Experian is not commonly used.  

There are 5 components that go into making your credit score. Payment history is an indication for lenders and creditors whether an individual is a lending risk due to a history of late or missed payments (bankruptcies, past due accounts, collections, judgments, etc.  Three factors will determine the size of the deduction in score:  a) Time passed since the payment blip b) Number of missed payments c) How bad the blunder was Amounts owed on credit Keeping the balances outstanding to less than 65-75% of the available credit limit will INCREASE the score. Balances above 75% of the available limit will DECREASE the score . Length of…

Going over limit (even by $1)  Operating close to limits (above 75%)  Slow repayment / late repayment  Not paying minimums  Unresolved phone / power bill issues Bankruptcy / consumer proposals Collections  Judgments  

Pay bills on time Set auto-payment Don’t go over limits (65-75% of limit, max) Pay cards in full every month Settle disagreements promptly Be weary of co-signing loans  Don’t excessively apply for credit