Your Credit Score

What is a Credit Score?

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. In Canada, 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.

What is a Credit Report?

A credit report is a "snapshot" of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.

Your credit file is created when you first borrow money or apply for credit, such as a credit card. On a regular basis, companies that lend money or issue credit cards to you, including banks, finance companies, credit unions, retailers, send specific factual information related to the financial transactions they have with you to credit reporting agencies.

How to Maintain a Good Credit Score

  • Pay all of your bills on time - paying late, or having your account sent to a collection agency has a negative impact on your credit score
  • Try not to run your balances up to your credit limit - keeping your account balances below 75% of your available credit may also help your score
  • Avoid applying for credit unless you have a genuine need for a new account

Can Bad Credit Hurt My Chance of Landing My Dream Job?

Depending on the type of job you are applying for, employers may pull a credit report which could affect you securing the job you've been working towards.

Unlucky circumstances aside, low credit scores may be an indicator of poor quality of work, lack of responsibility, or low productivity.

It is important to follow the simple steps above whenever possible to maintain a good credit score.

What if I Have a Low Credit Score?

HMECU can help. Contact your branch to speak with an HMECU representatives on how to rebuild your credit score.