Understanding Your Credit Report & Credit Rating

Your credit rating affects all aspects of your financial activities when it comes to borrowing money. It tells the story of how you’ve managed credit cards, loans, and other payments over time. This information is collected and updated regularly by Canada’s two main credit bureaus: Equifax and TransUnion. These agencies track your credit history and assign a credit score, which helps lenders understand your borrowing habits.

In Canada, credit scores range from 300 to 900 — the higher your number, the stronger your credit profile. A score closer to 900 generally means you’ve managed credit responsibly and are seen as lower risk by lenders. But remember, your score is only one part of your overall financial picture. Income, employment, savings, and your full application all play a role in mortgage approval, so a less-than-perfect score doesn’t mean you can’t qualify.

Everyone in Canada has the legal right to request a free copy of their credit report from Equifax or TransUnion once a year. It’s a great way to stay informed and make sure everything on your file is accurate. When you work with a mortgage professional, your credit can only be accessed with your written consent, so you’ll always know when and why it’s being checked.

Your credit report is a working document. It changes as you make payments, open or close accounts, and manage your credit. Over time, positive habits can improve your score and strengthen your overall credit health.

Here are a few simple ways to boost your credit score:

  • Make payments on time – even the minimum payment helps.

  • Keep your balances low compared to your credit limits.

  • Avoid applying for too many new accounts at once.

  • Check your report regularly for errors or outdated information.

  • Keep older accounts open to show a longer credit history.

As a mortgage professional, I can help you review your credit report, understand what it means, and guide you through steps to strengthen it, so when the time comes, you can move forward confidently toward homeownership.