What is your credit score and how does it affect your credit? As Canadians, we have two major credit reporting agencies that allow us to obtain our credit scores. These scores reflect our current financial situations, a snap-shot if you will, of our debts, credit lines, payment history, etc. The Credit reporting agencies typically use FICO scores, whereas creditors may use a different scoring system. The score you achieve from different banks and lenders range, but have similar qualities. They may place different weights on each quality, but they are all relatively similar, though some lenders can be more lax than others. Although major creditors and banks have their own criteria and scoring systems, for a good idea of what your credit rating, or your “credit-worthiness”, take a look at your credit report from a credit bureau. This assessment is based on a system introduced by the Fair Isaac Corp., who introduced FICO scores almost 2 decades ago. FICO scores range from 300 (bad) to 850 (good). Each lender has a different idea of what a good score is and depending on the amount and type of loan you want, a “good” score varies greatly. In terms of the FICO scores, typically if you are over 700 you are in good shape. However this does not mean that if you are at 650 you will not receive a good loan rate; you must simply find a more lenient lender. Some lenders are more lax on their definition of a good score than others, and you must research those lenders before applying. According to bankrate.com’s Dana Dratch, in her article “What, exactly, is ‘good’ credit?” creditors look at the following when determining your credit score: a) Payment history b) Percentage of available credit you're using c) Length of your credit history d) Your recent efforts to get more credit e) Mix of credit types you use For more information about credit scores, take a look at Dratch’s article “What, exactly, is ‘good’ credit?” at bankrate.com. | 
