If you want to know how to check your credit score in Canada, then that information should help solidify your chances of securing finances down the road for a number of different purposes.
Not everyone knows how to check a credit score in Canada or even what a Canadian credit score is. Checking your credit score is a simple and easy task that can be done through Equifax or TransUnion Canada. You might also be able to do it for free through your bank.
Sometimes all of these different methods come with some unexpected differences, and the differences can be quite large. It’s best to just focus on the overall health of your credit instead of constantly focusing on your credit score.
Last fall, there was a news article done by CBC News on why credit scores can differ so much between the different websites out there. There was one particular person that did a credit check and noticed there was a 200 point difference between both of the scores they received from different providers.
One manager, Scott Terrio of Hoyes, Michalos & Associates Inc., mentioned that Canadians are starting to focus way too much on what their credit scores are. Terrio stated that even individuals with high credit scores are obsessed with them.
Terrio further states that the credit score that’s visible to you could be completely different than the credit score that the bank sees. Many lenders will do credit reports that are solely crafted to suit them.
What’s even the point of doing that? When someone tells you what their credit score is during a conversation, what does that mean?
Are Credit Scores Useful When Trying To Get A Mortgage?
If you’re one of the people that tends to obsess over a credit score, it’s good to know that if you’re wanting to apply for a mortgage, the credit score that’s visible to your lender is the only one that will matter. The credit score that your lender will see is also typically not the same score that you’ve seen previously on any credit score checks from any of the providers.
When prospective home buyers visit their mortgage broker with a smile on their face and tell them that their credit score is ridiculously high, mortgage brokers are usually at a loss for words because a credit score is not one of the most important pieces of information to qualify for a mortgage.
Even in spite of someone telling their mortgage broker about their high credit score, there still needs to be a more in-depth credit report done.
What Is The Gold Standard?
FICO Score 8 is known to be the gold standard for credit scores. Mortgage brokers will typically send in a mortgage application that includes an Equifax Canada credit report. There’s a bunch of information on the credit report, but the biggest piece of information on the credit report is the FICO Score 8. When a lender needs to know what an applicant’s credit score is, that’s the number that’s brought up.
It’s reported that around 90% of Canadian lenders use The FICO Score 8. Even the big banks all use it, but if you want to go and get your own FICO score, you aren’t able to do so.
A lot of banks and mortgage brokers will use the TransUnion credit report, as well.
The founder of RateSpy.com, Rob McLister, stated that credit scores should be standardized across the various platforms. He went on to state that FICO 8 is the best scoring method for mortgage applications and that some of the other companies out there should begin using a more practical scoring method.
Focus On Credit Hygiene Instead Of Credit Scores
It’s good that so many Canadians are focused on their credit history because it is an important piece of information that applies to many different things in life. It’s useful for financing a vehicle, rental housing, and being approved for employment at certain places.
Many potential homebuyers will ask, “what is a good credit score in Canada for a mortgage?” While this question may be at the forefront of many people’s minds, keeping good credit hygiene is more important than focusing on your credit scores.
Contact
1206 Centre street Suite 207 Vaughan, Ontario L4J3M9
1206 Centre street Suite 207 Vaughan, Ontario L4J3M9
How To Check Your Credit Score In Canada
If you want to know how to check your credit score in Canada, then that information should help solidify your chances of securing finances down the road for a number of different purposes.
Not everyone knows how to check a credit score in Canada or even what a Canadian credit score is. Checking your credit score is a simple and easy task that can be done through Equifax or TransUnion Canada. You might also be able to do it for free through your bank.
Sometimes all of these different methods come with some unexpected differences, and the differences can be quite large. It’s best to just focus on the overall health of your credit instead of constantly focusing on your credit score.
Last fall, there was a news article done by CBC News on why credit scores can differ so much between the different websites out there. There was one particular person that did a credit check and noticed there was a 200 point difference between both of the scores they received from different providers.
One manager, Scott Terrio of Hoyes, Michalos & Associates Inc., mentioned that Canadians are starting to focus way too much on what their credit scores are. Terrio stated that even individuals with high credit scores are obsessed with them.
Terrio further states that the credit score that’s visible to you could be completely different than the credit score that the bank sees. Many lenders will do credit reports that are solely crafted to suit them.
What’s even the point of doing that? When someone tells you what their credit score is during a conversation, what does that mean?
Are Credit Scores Useful When Trying To Get A Mortgage?
If you’re one of the people that tends to obsess over a credit score, it’s good to know that if you’re wanting to apply for a mortgage, the credit score that’s visible to your lender is the only one that will matter. The credit score that your lender will see is also typically not the same score that you’ve seen previously on any credit score checks from any of the providers.
When prospective home buyers visit their mortgage broker with a smile on their face and tell them that their credit score is ridiculously high, mortgage brokers are usually at a loss for words because a credit score is not one of the most important pieces of information to qualify for a mortgage.
Even in spite of someone telling their mortgage broker about their high credit score, there still needs to be a more in-depth credit report done.
What Is The Gold Standard?
FICO Score 8 is known to be the gold standard for credit scores. Mortgage brokers will typically send in a mortgage application that includes an Equifax Canada credit report. There’s a bunch of information on the credit report, but the biggest piece of information on the credit report is the FICO Score 8. When a lender needs to know what an applicant’s credit score is, that’s the number that’s brought up.
It’s reported that around 90% of Canadian lenders use The FICO Score 8. Even the big banks all use it, but if you want to go and get your own FICO score, you aren’t able to do so.
A lot of banks and mortgage brokers will use the TransUnion credit report, as well.
The founder of RateSpy.com, Rob McLister, stated that credit scores should be standardized across the various platforms. He went on to state that FICO 8 is the best scoring method for mortgage applications and that some of the other companies out there should begin using a more practical scoring method.
Focus On Credit Hygiene Instead Of Credit Scores
It’s good that so many Canadians are focused on their credit history because it is an important piece of information that applies to many different things in life. It’s useful for financing a vehicle, rental housing, and being approved for employment at certain places.
Many potential homebuyers will ask, “what is a good credit score in Canada for a mortgage?” While this question may be at the forefront of many people’s minds, keeping good credit hygiene is more important than focusing on your credit scores.