Your credit score plays a crucial role in your overall financial health. It represents your creditworthiness and influences how much you can borrow, the interest rates lenders offer, and even the additional fees you may pay throughout the borrowing process.

Your score is determined by the information in your credit report, including:

➤ Payment history

➤ Total amount of debt

➤ Length of your credit history

➤ Types of credit you use

➤ How often you apply for new credit

Across Canada and the United States, most lenders use the FICO scoring system, which ranges from 300 to 900.

What Your Score Means:

• Higher credit scores increase your chances of mortgage approval and help you secure more favourable terms—such as lower interest rates and reduced borrowing costs.

• Lower credit scores make it harder to qualify for financing and often lead to higher interest rates and stricter lending requirements.

Examples:

• A score of 750+ may qualify you for a mortgage with competitive interest rates and a smaller required down payment—potentially saving you thousands of dollars over the life of your loan.

• A score below 600 could result in higher interest rates, larger down payment requirements, and significantly increased monthly expenses.

✅ Make timely payments – Paying your bills on time is the cornerstone of good credit. Set up reminders or autopay to stay on track.

✅ Manage your credit utilization – Keep your balances low by using less than 30% of your available credit. This shows lenders you’re responsible.

✅ Be mindful when applying for new credit – Only open new accounts when necessary. Frequent applications can lower your score.

✅ Review your credit report regularly – Check for inaccuracies and dispute any errors to keep your report clean and accurate.

✅ Establish a solid credit history – A longer credit history strengthens your score. If you're just starting out, a secured credit card can help build your profile