You hear a lot about the importance of your credit score and what it means for your personal credit. But what is it? Simply put, it’s a numerical value that sums up your personal financial history. The number is part of a report created by a consumer credit agency like Equifax or TransUnion. Lenders use the information in the report to determine their risk in offering you credit. Others, including landlords and employers, can access your report as well. You can look at your own report for free, but understanding it is important too. Here’s what you need to know.
What is a credit score?
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How do they figure it out?
If I don’t have credit will I have a good score?
How do I check my credit score?
Does checking credit score lower it in Canada?
What is a good credit score?
Who has access to my credit report?
What’s in my credit report?
Is the information permanent? What about my score?
What if I have a low score?
If you want to improve your score, check for errors and fix them. You should also get those debt levels down to between 30 and 50 percent of your limit. And most of all, treat debt with respect and only use it when you know you'll be able to pay it off. Here are some ways to reduce credit card debt, according to Canadian finance experts.