If you have been living in Canada for a while now, you must have heard the terms credit score and credit report. If your target is financial well-being these things are the most basic yet most important. I have tried to cover basic information on credit scores and credit reports. If you have any queries, feel free to shoot a comment in the comment box.
Who gives you a credit card?
There are hundreds of credit card-providing agencies in Canada. Banks and financial institutions are the most important of them. If you are a newcomer in Canada, you can apply for a credit card when opening a bank account. Personally, I don’t recommend you to get a credit card from anywhere else than from a bank.
Who gives you a credit report?
Equifax and Transunion are the two credit reporting agencies in Canada. TransUnion credit score ranges from 300 to 850, whereas Equifax credit score ranges from 280 to 850. Regarding credit reports, Equifax includes 81 months of credit history, whereas TransUnion includes 84 months.
What is a good credit score in Canada?
A good credit score is usually between 743 and 789. If your score is between 790 and 832, it is considered very good and if it’s between 833-900, it is considered excellent. Besides, a score between 300-692 is considered poor.
Why do you need a credit report?
In Canada, credit cards and credit reports are perceived as a person’s financial credibility. Financial institutions look at your credit report to decide if they will lend you money. The percentage of interest these institutions will charge you also depends on your credit report. You need a credit report before applying for a rental in any house/apartment, or before buying a house/car. Credit reporting is one of the financial basics in Canada.
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