There are varying factors used to asses your credit score:
- Credit payment history (35%)
- Current debts (30%)
- Time: length of credit history (15%)
- Credit type mix (15%)
- Frequency of applications for new credit (5%)
Credit ratings vary between 350 (very high risk) to 850 (very low risk). A score of 660 is an above-average credit rating. In the United States, there are three major credit bureaus: Equifax, TransUnion, and Experian. In Canada, the major credit bureaus are Equifax, TransUnion, and Northern Credit Bureaus. Each one can hold a different credit score for you. It is advisable to check your rating score at all the tree agencies.
Some tips to improve your Credit rating:
- Pay your bills on time
- Charge Less on your credit cards to improve your rating
- Only have the cards you need, don’t sign up for extra cards
- Keep your old credit accounts open as closing them makes your credit history seem shorter
- Don’t apply for too much credit as this may hurt your credit rating
