Understanding you credit score: The Good, The Bad and The Ugly

2023-04-08 Philippe Daigle Your Kelowna and Area Mortgage Expert

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Understanding Your Credit Score

The Good

The Bad

The Ugly


Key MessageIts your responsibility to manage

Your Credit Score



A credit score is a number thatsummarizes the historical creditinformation on a credit report.

The number reflects the likelihood that you will become delinquent on a loan

or a credit obligation in the future.

What is a credit score?


Credit Agencies in Canada


What is a credit score

• Score range from 300 to 900

• Every time you sign for credit, you agree to have your credit habits reported to credit agencies




Low Score will Cost you


Low Score will Cost you


Lousy Things Happens To Good People


The Good


The Bad


The Ugly


The Ugly


The Ugly


7 Ways to protect your Score

• Maintain a low credit card balance• Pay all bills on time• Do not Co-sign a loan• Continually keep your accounts

active• Resist signing for a department

credit card• Limit the number of accounts• Do an annual review


Why An Annual Check?We live in the era of Identity Theft


The first step is to pull your credit report

Make sure none of the following are on your report:

• Late payments, charge-offs, collections or other negative items that aren't yours.• Credit limits reported as lower than they actually are.

Fixing Your Credit Score?


– Accounts listed as "settled," "paid derogatory," "paid charge-off" or anything other than "current" or "paid as agreed" if you paid on time and in full.

– Accounts that are still listed as unpaid that were included in a bankruptcy.

– Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your reports

Fixing Your Credit Score?


Questions?

Economy & Finance

Understanding you credit score: The Good, The Bad and The Ugly