Your credit score is a snapshot or summary of your financial health at a specific point in time. Equifax and Trans Union are two large credit reporting agencies here in Canada. They use a scale that starts at 300 and goes all the way to 900 in determining your score. The higher the score on the scale the better you look to lenders. Remember that high numbers indicate lower risk for the lender.

A higher rating increases your ability to borrow money through a financial institution and qualifying for financing at a preferred rate. Healthy credit is important when applying for a line of credit, mortgage or car loan.

Variables such as outstanding debt, spending patterns and payment history are used to determine your individual credit score.

Ways to increase your credit score and look good to a lender, pay your bills by the due date.Pay your debt off in full or at very least meet the minimum payment on your credit card. Keep in mind each time you open or apply for credit it effects your credit score.

Recent changes in Ontario prohibit Auto Insurance Companies from using individual credit scores to rate  auto insurance which would effect your final premium.

Expo Insurance Brokers Inc.