femme devant écran d'ordinateur étudiant le rapport de crédit equifax
femme devant écran d'ordinateur étudiant le rapport de crédit equifax

Understanding the Equifax Credit Score

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.

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