Financial situationsCredit rating

The building or rebuilding of a credit rating works like savings: a gradual and continuous process where each little bit counts.

The two credit bureaux in Canada, Equifax and Trans-Unions are private enterprises. They are information centres where your creditors transmit their findings on you. Every person and members of these organizations are able to consult this information only with your consent. It is important to understand that it is not the credit bureau that gives you a rate, but your creditors.

Your credit score indicates the risk that you represent for any lenders, compared to other people. The higher your credit score is, the less of a risk you are considered. Equifax and TransUnion use a scale that starts at 300 and goes to 900.

Each lender may have their own personal method of determining your credit score and may establish the minimum score you need to have before they will lend you money. Lenders tend to use your credit score to establish an interest rate once they agree to lend you money.

Some factors that could have an affect on your credit score :

• How long have you had credit for? Accounts that have been open longer give better scores than newer accounts.
• What are your payment habits? If you usually have a balance on your credit cards, or you miss or make late payments, your credit will be affected.
• What are your existing debts? Your debt amount influences your credit.
• What is the number of recent reports done on your preceding credit? The more there are, the more your score will be affected.
• What are the types of credit products you use?
• Have you filed bankruptcy or debts that have been submitted to a collection agency?

A member of our team will happily help you regain control of your financial situation. Take a first appointment now, it is free and confidential. Contact a member of our team