Updated May 25 2022
Words like “credit report” or “credit score” are probably familiar to you: whether you’re applying for a bank loan, renting an apartment, getting a car loan, buying a house or simply buying a new cell phone, the information contained in your Equifax credit report is crucial. It’s like a consumer’s résumé, held by the Equifax Canada or Trans-Union credit bureaus: it allows the lender to access all your financial lending experiences and determine if they wish to do business with you.
In what follows, we answer the simple question: What’s on a consumer’s résumé?
Improving Your Credit Score: Why and How?
The credit bureau system, or if you prefer, the consumer’s résumé, is a bit like a report card. Just like in school, the teachers of different courses write down the grades obtained on the report card, forming an overall average. Here, each lender adds a grade to your file, forming a score, a credit score that varies from 300 to 900:
- Low score: 300 points
- Very good score: 725 points
- Best score: 900 points
A score of 660 points will be considered average, while a score of 700 will allow you to obtain better car financing rates, for example.
How can I improve my credit rating?
- Avoid multiple credit requests
- Make your credit card payments on time
- Pay all your bills promptly
- Avoid overloading your credit bureau with accumulated financing
In the case of a car loan, for example, the most advantageous financing options with the lowest interest rates are often only available to impeccable consumers, while a lower rating inevitably leads to worse auto credit deals.
Come and discuss your options at L’Ami Auto Crédit, in Chicoutimi, La Malbaie, Baie-Comeau, Alma and Sept-Îles. A team of experts is available to help you.