Financial Consumer Agency of Canada
www.fcac-acfc.gc.ca
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Understanding Your Credit Report and Credit Score
TransUnion's Credit Score
Note: The examples of credit report and credit score documents shown are based on samples provided by the credit-reporting agencies cited. FCAC has reproduced portions of the samples, adding notes to explain the content of a typical credit report or credit score document. The content of the report examples is fictitious and is provided for information and illustration purposes only.
This consumer has a credit score of 700.
This consumer has a better score than 36 per cent of the population.
Lenders see this consumer as a "fair" credit risk.
These factors influence this consumer's credit score.
Improvements in any of these areas should help increase this consumer's credit score.
Here are the top factors that make your score lower:
- There are too many consumer finance company accounts on your credit report. Having too much available credit can sometimes harm your credit score. Lenders may feel that you have the ability to spend more than you could potentially pay back. You might want to consider closing a few accounts or asking to have your credit limits reduced. Avoid closing too many accounts - especially the oldest accounts on your credit profile - because it could harm your credit score.
- Your account balances are too high. High levels of debt can signal to potential lenders that you are spending more than you can afford. It is a good idea to use your credit cards regularly but remember to keep your balances below 35 percent of your available credit limits. If you have balances above 35-50 percent, you could see your credit score start to drop.
- There is not enough recent revolving account information on your credit report. Using your credit accounts regularly is an important part of building healthy credit. Lenders will be able to better evaluate your creditworthiness if there is more data about your payment and spending behaviour on your credit report. Using a credit card to make a few purchases each month may help improve your credit score.
- Your loan balances are too high in comparison with your loan amounts. High levels of debt can signal to potential lenders that you are spending more than you can afford. It is a good idea to use your credit cards regularly but remember to keep your balances below 35 percent of your available credit limits. If you have balances above 35-50 percent, you could see your credit score start to drop.
Source: TransUnion
