What is a credit history?

1. A record showing a person’s ability to pay debts.
2. It shows your:
• credit accounts
• bill payment details
• borrowing habits
3. It is composed of a credit report and a credit score.
4. The credit report contains information on your:
• bank accounts
• credit cards
• lines of credit and loans
5. It will also show:
• records of bankruptcy or a court decision relating to credit
• issuance of a “bad” check
• a list of people and companies that have asked about your credit
6. Your credit score shows how much credit risk you represent.
• They range from 300 to 900.
• The higher the score, the better.
• A high score means less risk.
7. When you are given a credit rating, it shows:
• the score
• how you compare to the rest of Canada
• your rating of creditworthiness: very poor, poor, fair, good, or very good
8. Equifax and TransUnion are the credit bureaus in Canada.

Why is a good credit history important?

1. Institutions will check it when:
• you buy a house
• you buy a car
• starting a business
2. It can also be checked when you are applying:
• to rent a house
• for a job
3. Your credit history will show:
• if someone has tried to steal your identity
• if someone opened credit cards or loans in your name

Factors that affect your credit score:

1. How long you have had credit.
2. History of making payments:
• Do you carry a balance on your credit cards?
• Have you missed payments?
3. Outstanding debts.
• Are you close to your credit limit?
4. Number of inquiries about your credit history
• This shows if you are trying to get more credit.
5. Types of credit you are using.
6. Any record of bankruptcy or debts sent to a collection agency.

How to get a credit report

1. A free credit report once a year is good to:</li
   • monitor your credit
   • check for errors
   • check for signs of identity theft
2. A free credit report does not include your credit score.
3. A credit score report can be ordered for a fee.
4. Ask for a credit file disclosure from Equifax Canada or a consumer disclosure from TransUnion Canada.
• Get it by mail, fax, telephone or in person.
5. There is a fee if you want to get it online.
6. Check the FCAC page for contact numbers.