Understanding Your Credit Report and Credit Score

Overview

Building a good credit history is important for your financial health.

Along with millions of other Canadians, you have a credit history that is kept on file by companies called credit reporting agencies. They track how you use credit products, such as credit cards and loans, and pay your bills.

This information is used to create your credit report and credit score. These are some of the main tools lenders use when they decide whether they will lend you money and how much they will charge you to borrow it. Employers and landlords may also use credit reports to get a sense of your reliability.

You have the right to see your own credit report. And there are ways you can get it for free.

Knowing what is in your report is important. If you have a poor credit history, it could be harder for you to get a credit card or a loan. You could have to pay more to borrow money. It could even affect your ability to rent housing or get hired for a job.

You can also use your credit report to check for signs of identity theft.

This guide can help you:

• understand your credit report and score
• improve your credit score
• correct errors in your credit report
• order your credit report and score.