Everyone wants a higher credit score. Why? You are more readily approved for credit, you receive more favourable rates and, generally-speaking, life becomes much easier to navigate. What is a credit score? A credit score is a calculation that considers a wide range of financial variables in your life and then reduces that information down to one number. Lending institutions depend on these credit scores to determine if you are/are not a good credit risk. Scores range from 300 to 900. The higher the number, the better. A score of 725 is considered to be very good. The credit score calculation does not consider factors such as race, gender, religion, marital status, income level, nationality, place of residence or employment history. Can you impact your score? You definitely can—but only through consistently good behaviour going forward in the following five categories. Your credit score is made up of the following five weighted items:
Thoughts and suggestions:
Bottom line: Good habits going forward will guarantee that your credit score will improve over time and perhaps, sooner than you think, you will find it in more favourable territory. For more detailed information about how to get your credit report, understand your credit rating and improve your credit score with Credit Canada click here.
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Our blog is all about how to spend smart while still getting the most out of life.
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Every week we release the latest news and info on a wide range of money management and debt topics, everything from rising interest rates and costs to saving for a downpayment, retirement or your next vacay. Our blog is all about how to spend smart while still getting the most out of life.
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