Maintaining a good credit score can be essential to leading the life you want in Canada. And yet, many people do not know how a credit score is even calculated, or even how to check it.
Here are the 5 factors that make up how your credit score is calculated.
The History Of Your Payments (35%)
This is the big one.
Over one third of your credit score is calculated based on how reliant you have been at making payment on past credit and bills (e.g. phone bills).
Total Debt (30%)
This is another crucial factor.
If you have a large amount of debt, accumulated through the use of your available credit, your score could be impacted greatly.
Duration Of Your Credit History (15%)
When creditors are evaluating you, they want to know how trustworthy you are. And the longer you have had credit, the more accurately they can determine this.
So by having credit for a longer period of time, you will get a better score.
Types Of Credit (10%)
By varying your types of credit (e.g. credit cards, lines of credit, car financing plans) you will show yourself to be more trustworthy in the eyes of creditors.
Amount Of New Credit (10%)
By having a lot of new credit under your name, this will be seen by creditors as you being reckless. Try to limit the amount of credit you apply for in one time.
Even if you have a bad credit score, not to worry! Auto Loan Services specializes in helping people with bad credit scores get the car they need!
So contact us today to see what we can do for you!