Your Credit Score And How It is Calculated

Mortgage and Lending with TMG The Mortgage Group Canada Inc


Have you every wondered what your credit score is and how it is calculated? Here's the skinny..

Video Tip

Your credit score is a 3 digit number that lenders use to predict your credit worthyness.Credit reporting companies calculate your score based on payment history, how much you owe, how long you have had credit and how often you apply for new credit.

Because your credit score and credit report are constantly changing, it’s important to review them on a regular basis, at least once a year.


Since there are two main credit reporting companies in Canada, it’s a good idea to check your records with both companies.This helps you identify and correct any inaccurate information, detect any fraudulent activity and gauge your overall credit health. If you’re planning on applying for a mortgage, it’s especially important to check your report a few months in advance.

If your credit score is a little low, here are 5 tips for improving it:

  • Pay all your bills on time: Paying late or going into collection can reduce your score.
  • Don’t max out your credit limits: Keeping balances below 65-75% of your limit can increase your score.
  • Don’t apply for credit you don’t need: Too many inquires over a short period can reduce your score.
  • Don’t close old credit accounts, even if they’re in active: This can make your credit history appear shorter which can reduce your score.
  • Correct any negative inaccuracies on your credit report: This can increase your score.


Still wondering what your credit score is and how to improve it? Feel free to call me at 778.835.3306 or (toll free) 1.877.425.1891. I am here to  help!






























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