How is Your Credit Score Calculated?

How Credit Score Works

Credit Scores are provided by the 2 major credit bureaus in Canada; Equifax and TransUnion.

A credit report is a summary of how you pay your financial obligations. It contains information based on what you have done in the past. LENDERS consult this information to learn about your borrowing activity and repayment history.

The CREDIT SCORE is a number based on specific information on your Credit Report, here are the factors considered in CREDIT SCORE calculations:

  • 10% – CREDIT MIX: The mix between installment & revolving trade lines
  • 10% – NEW CREDIT: Approval on new credit, i.e. financing on a vehicle loan
  • 15% – LENGTH OF CREDIT HISTORY: How long the individual has been using credit
  • 30% – DEBT RATIO: Amount owed Vs Limits. Amount owed on credit lines should always be kept at below 70% of the limit
  • 35% – PAYMENT HISTORY: History of previous payments as stated on credit report




To obtain free credit scores, go to www.creditkarma.ca for your TransUnion Score, and www.borrowell.com for your Equifax score.

To learn more about how your credit score is being calculated or for assistance rebuilding and improving your, credit repair experts at Canada Auto Experts pride themselves in helping Canadians like you get out of bad credit situations. For a free no-obligation consultation call the toll free number 1-855-550-5565 or visit www.canadauto.ca.

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