Your credit score is a judgment about your financial health, at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers.
There are many different ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. High scores on this scale are good. The higher your score, the lower the risk for the lender. Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use your score to set the interest rate you will pay.
Your credit score: how it is viewed by lenders
300-575 is considered 'Poor'
576-629 is considered 'Fair'
630-679 is 'good'
680-750 would give you an 'excellent' rating
750-900 is the top rating you can get.
Credit Score - North American Standard Account Ratings
Each piece of credit history information in your credit file is assigned a rating by the credit grantor (the lender). The most common ratings are "O, I and R" ratings.
The "O" indicates that the item being described involves open credit.
The "I" indicates that the item being described involves installment credit, such as a loan that you pay in regular payments until the balance is repaid.
The "R" indicates that the item being described involves revolving credit, this is most often a credit card.
If you always pay on time, it will be coded a '1' in any of the above mentioned types of credit. If an amount was written off because you never paid it back, it is coded a '9'. These ratings are a coding system that translates "on time", "one month late", "and two months late", etc., into two-digit codes.
Also, most credit grantors now commonly use a numerical system called FICO or Beacon score. It is not usually included in the free credit report you can order.
Licensed Insolvency Trustees do not report to or have access to Credit Bureau information; your creditors and the Office of the Superintendent of Bankruptcy (OSB) report to the credit bureaus.
Too new to rate; approved but not used
Pays (or paid) within 30 days of billing or pays as agreed
Pays in more than 30 days but less than 60 days, or not more than two payments past due
Pays in more than 60 days from payment due date, but less than 90 days, or not more than three payments past due
Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due
Account is at least 120 days overdue, but is not yet rated "9"
Making regular payments through a special arrangement to settle your debts re: O.P.D. or Proposal
Repossession (voluntary or involuntary return of merchandise)
Bad debt; placed for collection; moved without giving a new address; bankruptcy
Our Licensed Insolvency Trustees (formerly called Trustee in Bankruptcy or Bankruptcy Trustee) and Estate Managers believe everyone deserves a financial fresh start, while being treated with dignity and respect. We have offices conveniently located in Calgary, Edmonton, throughout Alberta, and across Canada.
To speak to someone now call us at 310-8888 for a free, no obligation, confidential consultation.
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