VANCOUVER -- Many people are familiar with the terms credit score and credit report. However, a lot of Canadians still have some confusion over how credit reports work.
On CTV Morning Live, Taz Rajan of Bromwich and Smith joined the show to explain.
Rajan shared that every credit product you have reports your credit activity to an agency. The two agencies in Canada are Equifax and Transunion.
The report lists the credit product, open date, limit, balance, collections, judgments and restructuring.
These reports can be a few pages long and entail a lot more than just a number.
A credit score is a number derived from your activity and ranges from 300-900.
This is a snapshot at any given time for lenders to determine if you are a good risk to lend money to.
Rajan explained that credit reports can be checked for free. Rajan encouraged people to check once a year so that any errors or judgments that you were not aware of can be corrected.
Check out the full video on CTV Morning Live to learn the three tips Taz Rajan shared to improve your credit score.
