Credit Report


This post could list off the many benefits of having a great credit score, like buying a home or gaining a lower interest rate on you line of credit. But, let’s talk about how to use your credit to maintain a good score and ensure any credit checks run will have clear results.

Knowing what goes into your credit score will make maintaining that score easier and less stressful. There are five critical pieces of information that make up your credit score: payment history, credit age, mix of credit, level of debt, and recent credit. Don’t worry, not every piece of financial information impacts your credit score, like checking bank account overdrafts.

Finance 101

All bills paid on time is must to achieving and maintain a great credit score. This is not just your credit cards and loans, but your mortgage, utility bills, cell phone bill, and more. If you fail to pay your bills over time, they could wind up on your credit report, and might cause a credit check to result in a fail. Be kind, pay your bills on time.

Low Credit Card Balances

It’s seems simple, high credit card balances equal a low credit score. A good rule of thumb is to keep your credit card balance within 30% of your credit card limit. For example, if your credit card is $10,000, your balance should be $3,000. A balance with more than thirty percent could result in difficulty in paying it off in full when your billing statement arrives. Note, even if you do pay your balance off in full, a high balance could sway your credit score.

Debt Management is Key

Again, it may be obvious but high balances on lines of credit or loan balances can attribute to 30 percent of your credit score. Too much debt isn’t financially healthy to begin with, not to mention costly valuable credit points. Do you see a reoccurring theme? Lower your debt…

Don’t Close Credit Cards

Yes, they may be old, and you have used them in ages, but do not close out your old credit cards. Why? If you close a credit card, the card issuer does not report to the credit bureaus and credit scoring criteria place less value on inactive credit cards or accounts. You don’t want to lose years of good credit building by closing old accounts.

Relax with the Credit

A credit score is best served when you have limited applications for credit. Every time you apply for a new credit card or loan, you are taking little pieces out of your credit score. Now, inquires may only account for approximately ten percent of your credit score, but a little bit can go a long way. Opening new credit accounts can lower your average credit age, so open them frugally.

Beware of Your Credit Report

Ensure you are checking your banking statement regularly to look for errors from the issuer, or identity theft or credit card fraud – it happens more than you know. Checking your bank statement also makes you accountable for upholding all the above tips to maintaining a good credit score.

VerificationsCanada processes Credit Checks primarily for our financial clients, but we also welcome clients from other industries and individuals who want to know their personal credit score. We know that the protection and security of financial information is imperative for any individual who is working with data, payroll, and other monetary responsibilities, and therefore VerificationsCanada provides full Credit Checks, which includes a detailed report and credit score.

What is a credit score? It is an report on how good an individual or business is with money. By having a good credit score, an individual or business is more likely to pay rent or a lease on time, an individual show they are a good employee, and people or a company get a “picture” of their financial situation. A better credit score gives an individual or business a better advantage when requesting a lower rate on a loan.

Credit Score Ranges

850+ = Perfect
850-760 = Excellent
759-725 = Very Good
724-660 = Good
659-560 = Fair
559-300 = Bad

Requirements:

1. Complete application by providing minimal personal information.

2. Upload two (2) pieces of government issued photo identification.

3. Provide Social Insurance Number (SIN).

Credit Report and credit scores provide valuable insights into an individual’s sense of fiscal responsibility and financial situation. These considerations are important when hiring for financial organizations, businesses or jobs of fiscal responsibility.

VerificationsCanada processes consider any bank accounts, loans, credit cards, automotive payments, utility bill payments, etc., to ensure that every piece of financial information is examined and tallied to offer an accurate credit score. If you are hiring an individual, the threshold of what credit score you allow is completely up to you.

Call 1 888-343-3679 now to order Credit Checks with VerificationsCanada.