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What is a Credit Rating?
A credit rating (or profile) is a picture of how you, as an individual, pay back the companies you borrow money from. It is also an accounting of how you meet your other financial obligations.
A credit rating usually requires information in five categories:
1. identifying information (name, address, date of birth, etc.)
2. employment information
3. credit information
4. public record information
5. inquiries
What is NOT included on your credit rating:
- your race
- your religion
- your health
- your driving record
- your criminal record
- your political preference
- your income
Credit information is maintained on an individual basis. If you're married, the information in the credit profile for your spouse may not match your profile identically because certain accounts may have been established in your name or your spouse's name only.
To find out how you can learn more about your rating, contact www.equifax.ca or call 1-800-465-7166.
Credit Building Tips
Here are some tips to help you establish good credit without a credit history.
Do:
- Open a bank account-savings or chequing-and use it responsibly. This is the first step in establishing your financial history.
- Make sure you pay any utilities in your name (telephone, water, gas, and electric) in full and on time.
- Apply for a credit card. Responsible use will help you build a good credit history.
- Make all loan and credit account payments on time each month-paying at least the minimum amount due.
- If your debt is getting out of control, see your credit union financial planner for help.
Don't:
- Don't overdraw your bank account. This is a bad start to your credit history.
- Don't miss any bill or loan payments. Even late payments count against you.
- Don't let other people use any of your credit or ATM cards.
- Don't leave utilities in your name if you move. You are responsible for these accounts if they are still in your name.
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