How Are Credit Scores Calculated In Canada

1. How Are Credit Scores Calculated In Canada Have you ever wondered how credit scores are calculated? Many people are still in doubt about the factors that affect credit scores. Credit scores are calculated by the previous records of the loan payments. Your credit scores will get affected if you have missed repaying the loan on the date allotted. A credit score is a three-digit number that carries the information of your credit report. Credit scores help the moneylenders to have a view of your previous loan payments. On having a preview the moneylenders decide whether to lend money or not for the borrower. Typically a lender will not offer money if the borrower doesn’t have a solid credit score. The higher your credit score you get loans at a lower rate of interest. DFCS helps in such situations as it provides consumer proposal in Toronto. How is credit score calculated? Credit scores are calculated by five factors. ●35 percent of your credit score is calculated based on your loan payment histories. This is because the creditors need to know how you handle loan payments. ●30 percent is calculated on the total amount you have owed. This factor is main for the lender, as how much money you have owed, and this shows how you are going to pay the money you currently owe. ●15 percent is based on when you have used your credit for a long time. The longer you use the credit responsibly improves your credit score.

2. ●10 percent is based on new credit accounts and applications. This is calculated based on your credit applications. If you have applied for credit frequently, it affects your credit score. ●10 percent based on types of credits used. If have more than one or two hard inquires in the same year will affect the credit score. Credit score ranges In Canada, the credit score ranges from 300 to 900. The excellent credit score lies between 900 to 760, 759 to 725 denotes very good, 724 to 660 denotes good, 659 to 560 denotes fair and 559 to 300 denotes the poor credit score. You cannot get a loan for a poor credit score. DFCS offers financial advice to the customers in maintaining healthy financial situations and it offers consumer proposals Toronto. DFCS is an organization providing financial supports for customers with various solutions. The organization is expertise in providing advice for customers according to their financial situation. Contact Elankeeran Than Debt Free credit solution 10 Milner, Business court, Suite 334 Toronto, ON M1B 3C6 416-834-7227 info@dfcs.today https://www.dfcstoday.ca/consumer-proposal/