How to Check Your Credit Score: In 2 Minutes or Less
How to Check Your Credit Score: In 2 Minutes or Less
Posted on June 21, 2022
Your credit score is pivotal in deciding whether you can access credit and at what rate. It forms part of your overall credit report and will be with you all your adult life. But how can you check your credit score and how does the score work?
Our Glen Morris auto loans team is going to walk you through checking your credit score and will offer a few tips to improve it if necessary.
Checking your credit score in Glen Morris
Checking your credit score is very straightforward. You are entitled to one free check per credit bureau per year. As Canada has two bureaus, you can check your score twice per year.
The credit bureaus are TransUnion and Equifax. Both collate tons and tons of data on all of us that relate to how we handle debt.
This makes up your credit report which covers how much debt you have, whether you pay on time, how many types of credit you have and a lot more besides.
It is this information that makes up your credit score.
To check your credit score, contact TransUnion or Equifax. Follow the steps on each website to access a free copy of your credit report.
Don’t worry, checking your report won’t impact your score in any way.
There are other ways to check your credit score. Some credit cards and other financial products also allow free access to your credit report. Some identity insurances and preventative products also provide a monthly update on your credit score.
How your credit score works
Your credit score is a numerical figure made up of a range of factors. The higher your score, the better with credit you are deemed to be. Conversely, if you have had issues with credit in the past, you may have a lower score.
A credit score is made up of:
- Your payment history
- The total amount of credit you’re using
- Length of credit history
- Types of credit
- New credit
Payment history makes up 30-35% of your credit score. Never miss a payment and make regular debt payments to increase this.
Total amount of credit is also known as credit utilization. This can make up 30% of your credit score and is defined by the amount of credit you have available that you’re using.
Length of credit history makes up 15% of your score and measures how long you have been using credit.
Types of credit is your credit mix and typically accounts for 10% of your credit score. This is the different types of credit you use, mortgage, credit card, auto loan and so on.
New credit takes into account any new debts you have taken on recently and accounts for up to 10% of your credit score. This includes hard inquiries for auto loan applications or any type of borrowing.
That’s the very basics of credit scores. Different credit bureaus handle it in different ways and you will have a different score with each. Both should be similar but there may be differences in how each bureau calculates your score.
When you’re ready for a car lease or loan, get in touch with the Glen Morris auto loan experts at Northway Ford for great deals on auto finance.
Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!