A lender will use your credit score to determine if they will lend you money and how much interest they will charge you to borrow it.
Your credit score is a number calculated from the information in your credit report.
It takes time to add positive information to your credit report, so don't expect it to happen overnight, or even in a few weeks.
You can’t directly add things to your credit report, even if they're bills you actually pay each month. Creditors you have accounts with with may report your credit history to one or all three of the bureaus based on their existing relationship with that bureau.
Instead, you must depend on your creditors and lenders to send updates to the credit bureaus based on your account history. Bureaus don’t share information with each other under normal circumstances, so there’s a chance some of your accounts may only appear on one credit report.
Every month or so, the credit card issuers and lenders you have accounts with send accounts updates to credit bureaus.
They tell the credit bureaus your current balance, payment history, and other details about your accounts.
With time your credit score will improve and you’ll be able to afford bigger credit card limits and loans.
Order a copy of your credit report from both Equifax Canada and Trans Union Canada.Equifax Canada refers to your credit report as “credit file disclosure”.Trans Union Canada refers to your credit report as “consumer disclosure”.It shows the risk you represent to a lender compared to other consumers.Knowing your credit score before a major purchase, such as a car or a home, may help you to negotiate lower interest rates.This includes late payments on all your bills, high credit card balances, and too many credit card applications. Expect to get only small credit limits and loan amounts, in the beginning, i.e. Creditors and lenders will give you more credit once you’ve shown that you can be responsible with a little bit.