Canadian Mortgage Advisor
8-8 Strathearn Avenue
Greater Toronto Area , ON , L6T 4L9 Canada
1-416-930-1225

This hCard created with the hCard creator.

Helping GTA Homeowners find a mortgage that is right for them
Call Us: 1-416-930-1225

Find out about credit score or credit bureau report.Credit score variables

The first question one would ask – What is a credit score? Simple – When a lender like a Store, Bank, Credit Card company or any one else want to give you a line of credit or a loan – they want to know your creditworthiness. Long time ago we used to get someone to vouch for us. Now it is a bit different. There are companies like Equifax, Transunion who would provide a lender with a report and a score. This score sometime also called as FICO score or Empirica score. That report contains everything about your financial life. A lender would make their mind based upon that report.

Most important Factors Governing Credit score
Put it very simply there are only a few important factors which mainly dominates the credit score. The chart tells you the story. Note that these numbers are approximate only.

  1. Payment History – 35%
  2. Amount Owed – 30%
  3. Length of Credit History – 15%
  4. New Credit – 10%
  5. Types of credit – 10%

 

  1. The payment history part tells the lender about your past credits. How many cards or loans you are paying regularly, how many payments you missed and for how long. If you had any credit problem like Delinquency, Insolvency, consumer proposal, Bankruptcy, Public records etc.
  2. Amount Owed part tells how much credit you have and how much you are using. This gives a fair idea about how good you are to manage your finance.
  3. Well, as we all know what it means by length of credit history. We all face the situation while we want to open out first credit account in Canada. remember – do not cancel your oldest credit card.
  4. The report on new credit application provides a good idea about your credit goals in short term. If htere are too many application then the lender may get alarmed.
  5. Types of credit means different types of credit like a Line of credit or a store credit card etc.

You can see the Key factors to get a mortgage approval page to find out how to check your credit score for free.

Credit score distribution

Distribution of Credit score in CanadaCredit score Distribution

  1. Upto 549 – 4%
  2. 549-599 – 5%
  3. 600-649 – 6%
  4. 650-699 – 11%
  5. 700-749 – 19%
  6. 750-799 – 27%
  7. 800-849 – 23%
  8. 850+ – 5%

The second question we ask – What is the credit score looks like in Canada This is not so difficult either. The charts provides us with an approximate status in Canada. As we see that lower is the rate very high is the delinquency rate. It is normal for the banks that they would try to take shelter in interest rate to cover the risks. That is one of the reason we see high interest rates for low credit borrowers.Credit Delinquency Stats

Let’s Talk

About Us

Sudip Adhikari.
Agent License #M10001082
Broker Mortgage Diligent -
Head Office -1305 Matheson Blvd East, Mississauga, ON L4W 1R1
FSCO #10252 O.A.C , E&OE

Currently Serving


View Larger Map