{"id":17248,"date":"2022-12-06T01:23:28","date_gmt":"2022-12-06T01:23:28","guid":{"rendered":"https:\/\/hypotheques.ca\/blogue\/votre-score-de-credit-un-element-decisif\/"},"modified":"2023-07-21T21:08:46","modified_gmt":"2023-07-21T21:08:46","slug":"your-credit-score-a-decisive-element","status":"publish","type":"post","link":"https:\/\/hypotheques.ca\/en\/blog\/your-credit-score-a-decisive-element\/","title":{"rendered":"Your credit score: a decisive element."},"content":{"rendered":"

Lenders evaluate your credit report and credit score.<\/p>\n

In fact, your credit report reflects your\u00a0financial reliability<\/strong>. The higher your score, the more likely you are to obtain a\u00a0mortgage\u00a0at an advantageous rate and under\u00a0good conditions<\/strong>.<\/p>\n

Your credit file is a decisive piece in your financing requests (car etc.) and especially when buying your property.
\nIt is an element that will follow you throughout your projects. This information is available and visible for\u00a0a period of 7 years<\/strong>.<\/p>\n

If you have bad credit, there are several ways to\u00a0<\/strong>improve your credit rating.<\/strong><\/a><\/p>\n

Your\u00a0credit score<\/a>\u00a0is crucial when applying for a loan. In fact, the higher your credit score (minimum 300 and maximum 900), the more you will demonstrate that you are able to repay your debts.
\nIt allows banks to\u00a0evaluate the risks<\/strong>\u00a0they would take by financing you but also the amount they would be able to lend you.<\/p>\n

Please note that a high score does not guarantee that you will receive your loan: other documents are attached to your file to ensure\u00a0your solvency<\/strong>\u00a0(income for example).<\/p>\n

Where is your score set?<\/h2>\n

Two national credit reporting agencies will determine your score:\u00a0Equifax<\/strong><\/a>\u00a0and\u00a0<\/strong>TransUnion<\/strong><\/a>.<\/strong>
\nOnly one of the two scores is usually required for your file and the result may differ by a few points depending on the agency.
\nIn addition to your credit score, you will have\u00a0a score for each line of credit<\/strong>\u00a0ranging from 1 to 9.
\n1 being the score that guarantees that you are paying your debts correctly and, 9 being the score attributed to accounts in distress, in collection (account in collection), or in bankruptcy.
\nWith each late payment, this score will increase by one point. The maximum being + 5 points for a 120 day delay.
\nYour score and your rating will define your\u00a0management capacity and confirm that you are respecting your financial commitments<\/strong>.<\/p>\n

Calculating your score<\/h3>\n

Your payment history is the most important factor in determining your score. The way you pay your credit accounts, loans (car or student loans for example) will define your score.
\nLate payments on your bills and overdue payments will also affect your score. The frequency of late payments and the amounts owed will be evaluated in order to readjust your score downward.<\/p>\n

Also, the ratio between your available credit and your used credit will increase your score if it is positive. This calculation will determine your exact margin or total limit.<\/p>\n

In order to best evaluate your score and your file, you may have to provide additional information. Among other things, the credit applications that you are already repaying or those that you have already made. This request for additional documents may impact your score depending on the case.<\/p>\n

Some tips to optimize your score<\/h4>\n