What is the best indicator of financial health?
Why is credit rating a poor indicator of financial health?
How can I find out what is listed on my credit report?
How do you read your credit report?
How do I get a free credit report?
What is the best indicator of financial health?
Net worth = total assets you own minus the amount you owe
Why is credit rating a poor indicator of financial health?
Credit rating only focuses on payment history and is not related to your net worth. Many people borrow from one creditor to pay another which allows them to maintain their “excellent” credit rating however their financial health is getting worse and they end up going further and further into debt.
How can I find out what is listed on my credit report?
- Contact one of the credit reporting agencies: www.equifax.ca or www.transunion.ca
How do you read your credit report?
- Your credit report is like a report card and each creditor assigns a mark
- Marks include a letter and a number
- The best credit ratings are R1 or I1
- “R” applies to revolving lines of credit and credit cards
- “I” applies to instalment payment loans like mortgages and vehicle loans
- The number represents the period or periods between payments
How do I get a free credit report?
- Complete the form to receive your free credit report by mail
