Your credit score will be a snapshot of your credit history as reflected by the financial information gathered from the two major credit bureaus, Equifax Canada and TransUnion Canada.
If you are trying to manage your personal finances, it is important to know what goes into your credit report, who is submitting the credit report request, who is gathering the information, and how your credit score is formulated.
Some of the factors that contribute to your credit score are the timeliness of previous payments made, the timeliness of current payments that you are making, the length of your credit history, and the amount and type of your current debt structure.
The higher your credit score, the greater your chances will be getting financed.
Equifax Canada: www.equifax.ca (800) 465-7166
TransUnion Canada: www.transunion.ca (800) 663-9980
- Credit card payments
- Telecommunications accounts (mobile phone and internet bills)
- Liens and repossessions
- Delinquent accounts
- Debts sent to collections
- Negative banking information
- Inquiries from lenders and others who request your credit report
Refers to a loan that has both a fixed price and a timeline associated with it and will run until the debt is paid. An example would be a car loan.
O – Open
Open credit is when you borrow money up to a certain max limit and the full balance is due at the end of each period. An example would be a student loan.
R – Revolving
The most common line of credit, this is when you make regular payments in varying amounts depending on the balance of your account, and can then borrow more money up to your credit limit. An example would be a credit card.
R1 – Pays within 30 days of payment due date or not over one payment past due.
R2 – Pays in more than 30 days from payment due date, but not more than 60 days.
R3 – Pays in more than 60 days from payment due date, but not more than 90 days.
R4 – Pays in more than 90 days from payment due date, but not more than 120 days.
R5 – Account is at least 120 days overdue, but is not yet rated “9”.
R6 – This rating does not exist.
R7 – Making regular payments through a special arrangement to settle a debt.
R8 – Repossession (voluntary or involuntary return of merchandise).
R9 – Bad debt; placed for collection; moved without giving a new address, or bankruptcy.