Welcome Permanent Residents in Canada, Holiday Working Visa Holders in Canada & Students Studying in Canada,
This article is for you! You should know about your credit score & how to improve it. It is very important when you are going to buy a house, buy any real estate investment or applying for a credit card. Read below for information about your credit report & FICO score. You should look at your credit report
every 2-3 months to ensure there are no problems.
A
credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information, typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, employers, landlords, and government departments employ the same techniques. Credit scoring also has a lot of overlap with data mining, which uses many similar techniques.
The system of credit reports and scores in Canada is very similar to that in the United States, with two of the same reporting agencies active in the country:
Equifax and TransUnion (Experian, which had entered the Canadian market with the purchase of Northern Credit Bureaus in 2008, announced the closing of its Canadian operations in 2009.
I just read this from the Experian website Effective April 17, 2009, It looks like that Experian will
discontinue its Canadian consumer credit bureau reporting as a result of the very difficult economic environment in Canada and around the world.)
There are, however, some key differences between Canada & U.S. One such difference is that, unlike the United States, where a consumer is allowed only one free copy of their credit report a year, in Canada, the consumer may order a free copy of their credit report any number of times in a year, as long as the request is made in writing, and as long as the consumer asks for a printed copy to be delivered by mail. This request by the consumer is noted in the credit report, but it has no effect on their credit score. According to Equifax's ScorePower Report, FICO scores
range between 300 and 900.
The Government of Canada offers a free publication called
Understanding Your Credit Report and Credit Score. This publication provides sample credit report and credit score documents, with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that
identity theft has occurred. The publication is available online at the Financial Consumer Agency of Canada. Paper copies can also be ordered at
no charge for residents of Canada.
The FICO Score attempts to measure your credit habits and utilization. It is built by grouping data into predictive characteristics in
5 categories. It is
extremely important for credit to have a healthy number since all institutional credit applications take a close look at this report.
35% PAST PERFORMANCE· The fewer late payments, judgments, liens or collections, the better
· Recent late payments weight more than those two years past
30% CREDIT UTILIZATION· Low balances on several cards are better than high balances on a few cards
· Balance should be below 70% of available credit
· Too many cards can be a detriment
15% CREDIT HISTORY· The longer the account have been open and in good standing, the better
· Avoid “credit surfing”: Opening new accounts and closing established accounts will negatively impact credit score
10% TYPES OF CREDIT IN USE· Finance company accounts score lower than traditional bank or retail accounts
· Deferred payment options funded by finance companies impact the score accordingly
10% INQUIRIES· Looking for new credit habitually can be indicative of higher risk
· Promotional or administrative inquiries (ie. credit grantor updates) will show on the report but it would not affect it
Please use this blog posting as only an introduction to your education on your credit report. Research more by going to the two main credit bureaus:
- http://www.equifax.ca/
- http://www.transunion.ca/
Learn more about your credit & FICO score by reading these books:
Contact me anytime to learn more about your credit report & FICO score.
Contact Do Education to help you study in CANADA. http://www.doeducation.biz/
COMING SOON.........
- Our new website will have our updated e-commerce ESL program search for adult, elementary & secondary students. We offer short term, long term, TESOL/TESL, business, summer camps, winter camps & much much more.
- Our new website will have a social network designed to help students to meet myself & other students who are studying in Canada. Here you can design your own profile & share videos, photos & even chat with our new video chat.
- Our new website will have an online LIVE ESL classroom teaching English. The cost for the leesons are around $3.33 CAD / lesson or $39.95 CAD / month for 12 hrs of English lessons or $29.95 CAD / month for 8hrs of English lessons. You can even qualify for a 25% discount if you decide to study in Canada.
- Our new website will have an online LIVE support chat to help you answer any questions you might have about studying in Canada. We will help you fill out all of the applications & make recommendations about where the safe places are to studying in Canada.
- Our new website will have a fantastic AFFILIATE PROGRAM designed to help you make money while you are studying in Canada. MAKE MONEY NOW!
- PLUS MUCH MUCH MORE.......COMING JUNE 2009 new website:
www.doeducation.net
Contact Me for more information,
Stephen M. Coon - CEO/Founder of Do Education
steve@doeducation.biz
http://www.doeducation.biz/
Follow us on Twitter
http://twitter.com/DoEducation_CEO
The world is changing so quickly these days! Everybody is becoming busier & busier. Our goals may seem so far off in the distance because of our busy schedule. We are not going to become less busy, well unless we quit our jobs or retire soon. However, we still need to make money. If you live in a country like South Korea, Japan, China, Brazil, Mexico or Taiwan maybe you are interesting in studying English for many reasons like:
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