You know from first-hand experience that your credit score plays an important role when purchasing a home. But for many, its contents are not entirely understood.
Canada's two major credit-reporting agencies, Equifax and TransUnion, gather a financial history about you that includes information about your credit and bank accounts, public records that reveal bankruptcies or credit-related court judgments, and any debt that went to a collection agency. It may also include a personal statement from you regarding information in your history.
This information is used to generate a score between 300 and 900 which lenders then use to determine whether or not to extend credit to you. The higher your score the lower your risk.
You should request a credit report from both credit agencies at least once a year to ensure your information is correct. Visit equifax.ca and transunion.ca to learn more.
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