CREDIT SCORES: HERE’S WHAT YOU NEED TO KNOW
- johnathanmcquoid
- Jan 17
- 2 min read
Your credit score affects every major loan you apply for — from your mortgage to your car loan to your line of credit.
And with stricter mortgage rules and rising rates, your score matters more than ever.
Here’s what you need to know 👇
🔎 Start by knowing where you stand
You should check your credit report at least once a year.
You can request a free copy from:
✔️ Equifax Canada
✔️ TransUnion Canada
This helps you:
• confirm your information is accurate
• catch mistakes early
• identify possible identity fraud
🆕 New to credit? Your score will be lower at first
If you’re new to borrowing, your score won’t be as high as someone who has years of history — and that’s normal.
Why?
✔️ Payment history matters most
✔️ Established accounts carry more weight
✔️ Lower debt = higher score
Even if you manage credit perfectly, you simply need time to build history.
💳 Using credit properly can actually help you
Credit cards and lines of credit can work in your favour when used wisely:
✔️ Pay balances in full
✔️ Avoid interest
✔️ Keep usage low
If you pay the full amount on time each month, you essentially use the bank’s money for free.
⚠️ Forgot a payment? Here’s the truth:
Your score generally takes a hit after two consecutive missed payments, not one.
But when it drops, it drops fast — typically 60 to 100 points instantly.
And your lender may raise your interest rate as a penalty.
Every point counts, especially if you plan to apply for new financing.
📊 Key factors that determine your credit score
Here are the biggest ones lenders look at:
🔸 Credit card balances
Your credit card usage has more impact on your score than car loans or LOCs.
Keep balances below 30%–70% of the limit for the best results.
🔸 Credit history length
Older accounts help your score — even if you don’t use them often.
Use old cards periodically to keep them active.
🔸 Errors or outdated information
Mistakes happen.
Dispute inaccurate cell phone bills, incorrect balances, or unauthorized accounts.
We can help you identify what needs to be fixed.
💡 Final Thought
Your credit score is one of the most powerful financial tools you have — and improving it is easier than most people think.
If you want help reviewing your credit report or boosting your score for a future mortgage, message The Frontline Mortgage Group. We’ll walk through your report with you and build a customized improvement plan. 💬