Understanding Your Credit Score
Your credit score is a three-digit number, ranging from 300 (worst) to 900 (best), that reflects how well you handle having credit. Your credit score starts when you get your first credit card, loan, line of credit, or cell phone in your own name. The score is based primarily on your credit payment history, your current debts, the length of your credit history, what mix of credit you have, and how frequently you apply for new credit. The more responsibly you use the credit you have, the better your score.
When you apply for a loan or mortgage, your score can be checked and can affect your ability to secure a loan. You should check your credit score once a year to make sure there are no errors, like incorrect personal information and false credit information (like a payment you made on time showing up as late). You should also look out for credit you haven’t taken out as this could signal identity theft. In Canada, we have two credit reporting agencies, Equifax and TransUnion. Since not every creditor reports their information to both agencies, Equifax and TransUnion may not have exactly the same information about you or use the same software to calculate your score. As recommended by the Financial Consumer Agency of Canada, when checking your score, it is recommended to contact both agencies. Now that you’ve calculated your net worth and know your credit score, you should have a good sense of where you stand financially.
When we open your membership at EKC, we will pull your credit bureau and will discuss the results with you, recommending ways to increase your score or simply giving you a pat on the back for a job well done in maintaining excellent credit.
To discuss further, contact EKC at 1.866.960.6666 or book an appointment.
We’re happy to help!