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Establishing and Maintaining Your Credit
We can help you establish, maintain, or recover your credit rating.
Loans and Credit
Tips to help you apply for credit
Applying for credit shouldn't be a shot in the dark. There are many things that can help you with your credit applications. Watch this video to hear some of the tips that can help you the next time you apply for credit.
You and your credit rating
Credit can be a valuable financial tool; it can make life more comfortable and long-term goals more attainable. We’ve prepared this information to help you understand the credit granting process so that you can establish a healthy credit rating. It’s important to establish and maintain a healthy credit rating because it’s one of the factors in determining the type and amount of credit you may be qualified for.
So, what is a credit score?
Your credit score is an assessment of your ability to fulfill the financial commitment of borrowing credit at a particular time, based on your financial history as reported to the credit bureau. It is important to remember that your credit score is dynamic. This means that it will change as your financial circumstances change.
While most financial institutions offer similar products and collect similar information during the approval process, credit granting policies will vary by product and from one credit grantor to the next.
Regardless of an institution’s credit granting policies, your overall credit rating will be one of the most important factors in determining if you're approved for credit at any given time.
How is my credit score determined?
Your credit score is determined by your credit history. Every time you apply for or receive credit, and every time you make or don’t make a payment on time, and use your credit you are building your credit history.
When you apply for credit, there are three ways your financial institution will evaluate your credit history:
- Review your past dealings with them;
- Consider any new information you provide in your credit application;
- Contact a third party credit agency for a report on your overall credit history.
Credit companies collect information from the companies that provide the credit to you. This builds your credit report, which represents a summary of your activities with a variety of financial institutions.
It is good practice to request the details of your credit report from the credit agencies periodically, to help you understand your rating and ensure that the information is correct. This is important because a strong credit record enhances your ability to get credit in the future, whereas negative reports such as overdue payments or non-payments, could make it more difficult for you to borrow or get credit in the future.