Understanding Your. Credit Report and Credit Score

Transcription

1 Understanding Your Credit Report and Credit Score

2 Table Contents Your hisry...1 Understanding report...1 Understanding score...7 Checking report and score...13 Building a hisry...15 Financial Consumer Agency Canada

3 Your hisry If you have ever taken out a loan, used a card or taken advantage a buy now, pay later fer, you will have a hisry. Whenever a financial institution, such as a bank, a card company, or any other business gives you, it may send information about whether or not you make payments on time a -reporting agency. Credit-reporting agencies, also known as bureaus, are businesses that collect information about you and how long it takes you pay back money you have borrowed. This information is called hisry. When you want borrow money in the future, the lender will check with a -reporting agency see if you have a good hisry. Having a good hisry is very important. If hisry is poor, a lender can refuse give you a loan. You may not be able get a mortgage buy a new house, or take out a personal loan. If the lender does decide give you the loan, a poor hisry may mean you will have pay a higher interest rate. A poor hisry can affect you in other ways, o. For example, a landlord may refuse rent you an apartment because a poor hisry. A -reporting agency provides information about hisry in two ways, as a report and as a score. Understanding report What is a report? Along with the hisries millions other people, hisry is recorded in files maintained by at least one Canada's three major -reporting agencies: Equifax, TransUnion and Northern Credit Bureaus. These files are called reports. A report is a snapshot hisry. It is one the main ols lenders use decide whether or not give you. Who can see report? You have the right see report. No one else can have access the information in report unless you allow it. Usually, when you sign documents such as a loan or a card application, you are allowing the organization that is giving you check hisry. Credit-reporting agencies will only give information from report someone else when you have given permission, and when the request is related, collection a debt, rental a house or an apartment, or an application for employment or insurance. What kind information does report contain? Your report contains information about past and present personal and financial situation. Personal information: This is information such as name, current and previous address(es), social insurance number, telephone number, date birth, and current and previous employer(s). 1 Financial Consumer Agency Canada

4 Credit information: This is information related any you may already have, such as a or retail card, a line, a loan or a mortgage. Banking information: This is information about the accounts you have, including any NSF (non-sufficient funds) or bad cheques you may have written. Public records: This is any information on the public record such as a bankruptcy or a -related court judgment against you in a lawsuit. Secured loans, which are backed by an asset ( property for example), may also appear in report. Collection information: This shows whether you ever had a debt that you could not pay, which was referred a collection agency for payment. Consumer statement: This is any statement you may have made explain a particular situation, such as a dispute with a financial institution or a fraud warning. Credit report inquiries: This is a list all the people who have inquired about : self, a lender, or any other authorized organization. How does the -reporting agency describe the hisry payments? In report, -reporting agencies describe the hisry payments in a number ways. By rating it Some -reporting agencies report the lenders' rating each hisry items on a scale 1 9. A rating 1 means you pay bills within 30 days the due date. A rating 9 means that you never pay bills at all or that you have made a consumer debt repayment proposal the lender. A letter will also appear in front the number: for example, I2, O2, R2. The letter stands for the type the you are using. I means you were given on an installment basis, such as for a car loan, where you borrow money once and repay it in fixed amounts, on a regular basis, for a specific period time until the loan is paid f. "O" means you have open such as a line, where you borrow money, as needed, up a certain limit and the tal balance is due at the end each period. This category may also include student loans, for which the money may not be owing until you are out school. R means you have revolving, where you make regular payments in varying amounts depending on the balance account, and can then borrow more money up limit. Credit cards are a good example revolving. By using a payment chart This chart shows payment hisry over the last two years. By using a payment scale This scale indicates the number times you paid bills 30, 60 or 90 days after the due date. What does a report look like? On the following pages, you will find sample reports from two Canadian -reporting agencies: TransUnion and Equifax. If you look at these examples carefully, you will see what kind information a report contains. These examples will also help you understand own report. The examples shown here are for illustration purposes only. Financial Consumer Agency Canada 2

5 Two Year Payment Hisry: TransUnion's Credit Report Personal Information Check see if personal information is correct. If you gave the reporting agency a statement explain a particular situation, it will be included here. Name: Also Known As: Audrey O'Dell Audrey T. O'Dell Date Birth: 04/30/1973 Telephone #: (123) Employer: TransUnion Date Updated: 09/1999 Consumer Statement None reported Summary Total Accounts: 5 Open Accounts: 0 Closed Accounts: 5 Delinquent: 0 Derogary: 0 Current Address: 123 A ST HAMILTON, ON L8N 3L2 Date Updated: 07/2000 Previous Address: 456 B ST CHARLOTTETOWN, PE C1A 2S8 Date Updated: 01/1994 Balances: 4430 Payments: 110 Public Records: 0 Inquiries (2 years): 3 This scale explains the symbols used describe payment hisry. Check see if card information and payment hisry are correct. Account Hisry At-a-glance viewing payment hisry Not Open Unknown Current 30 days late OK PP RF CC 60 days late 90 days late 120 days late Revolving Accounts: Accounts with an open-end term ZELLERS Account #: 1246**** Type: Revolving account Condition: Open Pay status: Paid as Agreed Balance: $345 Payment: $10 Monthly High Balance: (due every month) Terms: Remarks Limit: $1500 Two Year Payment Hisry: 150+ days late Payment plan Reposession Foreclosure Collection Chargef Opened: 04/2002 Reported: 06/09/2004 Responsibility: Individual account Past Due: OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK jun jul aug sep oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may Six Year Payment Hisry: 30 days late: 0 60 days late: 0 90 days late: 0 Check see if all accounts are listed correctly. If you find an error, ask the reporting agency about it ensure you are not a victim fraud. 3 TD/GM VISA Account #: Condition: Open Balance: $1210 High Balance: $1500 Terms: Remarks Two Year Payment Hisry: Type: Revolving account Pay status: Paid as Agreed Payment: $0 Monthly (due every month) Limit: $1000 Six Year Payment Hisry: 30 days late: 0 60 days late: 0 90 days late: 0 Opened: 11/2001 Reported: 06/09/2004 Responsibility: Individual account Past Due: OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK jun jul aug sep oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may Installment Accounts: Accounts comprised fixed terms with regular payments ASSOCIATES FINANCIAL Account #: **** Type: Installment account Opened: 04/2002 Condition: Open Pay status: Paid as Agreed Reported: 06/09/2004 Balance: $2000 Payment: $100 Monthly Responsibility: Individual account High Balance: $4000 (due every month) Past Financial Due: Consumer Agency Canada Terms: Limit: Remarks

6 Check see if the information about installment loans, car loan for example, and payment hisry are correct. Check see that information about any collections is correct. Note the dates, since this information is usually removed from report after 6 years. Check see if banking information is correct. An unusual increase in the number inquiries can have a negative influence on score. Your own inquiries do not have any effect on score. Make sure that you have given all the companies listed here permission see report information. Account #: Type: Revolving account Opened: 11/2001 Remarks Two Condition: Year Payment Open Hisry: Pay status: Paid as Agreed Reported: 06/09/2004 Two Balance: Year Payment $1210 Hisry: Payment: $0 Monthly Responsibility: Individual account High OK Balance: OK OK $1500 OK OK OK OK OK OK OK OK (due OK every OK OK month) OK OK OKPastOK Due: OK OK OK OK OK OK Terms: jun OK jul OK aug OK sep OK oct OK nov OK dec OK 03 OK feb OK Limit: mar OK apr OK $1000 may OK jun OK jul OK aug OK sep OK oct OK nov OK dec OK 04 OK feb OK mar OK apr OK may OK Remarks jun jul aug sep oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may Six Year Payment Hisry: Two Year Payment Hisry: Six Year Payment 30 days late: Hisry: 0 60 days late: 0 90 days late: 0 OK OK30 OK days late: OK OK 0 OK OK OK60 OK days OK late: OK0 OK OK OK 90OK days OK late: OK0 OK OK OK OK OK OK OK TD/GM jun jul VISA aug sep oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may Installment Accounts: Accounts comprised fixed terms with regular payments Account #: Type: Revolving account Opened: 11/2001 ASSOCIATES Six Year Payment FINANCIAL Hisry: Condition: Open Pay status: Paid as Agreed Reported: 06/09/2004 Account Balance: 30 #: days **** $1210 late: 0 60 days Type: Payment: late: 0 Installment $0 Monthlyaccount 90 days late: 0Opened: Responsibility: 04/2002 Individual account Condition: High Balance: Open $1500 Pay status: Paid (due every as Agreed month) Reported: Past Due: 06/09/2004 Installment Balance: Terms: Accounts: $2000 Accounts comprised Payment: Limit: fixed terms $1000 with Monthly regular payments Responsibility: Individual account ASSOCIATES High Remarks Balance: $4000 FINANCIAL (due every month) Past Due: Account Terms: #: **** Limit: Type: Installment account Opened: 04/2002 Two Condition: Remarks Year Payment Hisry: Open Pay status: Paid as Agreed Reported: 06/09/2004 Two Balance: OK Year OK Payment OK $2000 OKHisry: OK OK OK OK Payment: OK OK $100 OK OK Monthly OK OK OK OKResponsibility: OK Individual OK OK account OK OK High jun Balance: jul aug $4000 sep oct nov dec 03 feb mar apr (due may every jun jul month) aug sep oct Past nov Due: dec 04 feb mar apr may Terms: OK OK OK OK OK OK OK OK OK Limit: OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK Six Remarks jun Year jul Payment aug sep Hisry: oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may Two Year30 Payment days late: Hisry: 0 Six Year Payment Hisry: 60 days late: 0 90 days late: 0 Installment OK OK30 OK days Accounts: late: OK OK 0 Accounts OK OK comprised OK60 OK days OK late: fixed OK0 terms OK with OK regular OK 90OK days payments OK late: OK0 OK OK OK OK OK OK OK ASSOCIATES jun jul aug FINANCIAL sep oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may Account Other: #: Accounts **** in which the exact category Type: is unknown Installment account Opened: 04/2002 Six Year Payment Hisry: Condition: Open Pay status: Paid as Agreed Reported: 06/09/2004 None Balance: reported 30 days $2000 late: 0 60 days Payment: late: 0 $100 Monthly90 days late: 0Responsibility: Individual account High Balance: $4000 (due every month) Past Due: Collection Accounts: Delinquent accounts sent for recovery Other: Terms: Accounts in which the exact category Limit: is unknown None Remarks reported None reported Two Year Payment Hisry: Bank Information Collection Accounts: Delinquent accounts sent for recovery Bank OK OK accounts OK closed OK OKfor OK derogary OK OKreasons OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK None jun jul reported aug sep oct nov dec 03 feb mar apr may jun jul aug sep oct nov dec 04 feb mar apr may None reported Bank Six YearInformation Payment Hisry: Public 30Information days late: 0 60 days late: Bank accounts closed for derogary reasons 0 90 days late: 0 None Other: reported Accounts in which the exact category is unknown None reported Public None reported Information Inquiries Collection Accounts: Delinquent accounts sent for recovery Credir Name Date Inquiry None reported None reported CDN IMPERIAL BANK OF COM 03/20/2004 Inquiries CITIBANK CANADA 12/04/2003 Bank TCRS/COTTER Information 03/08/2003 Credir Bank accounts Name closed for derogary Date reasons Inquiry Credir CDN Check Contacts see if the public information related bankruptcies, judgments, and secured loans is None IMPERIAL reported BANK OF COM 03/20/2004 CITIBANK Credir correct. Name CANADA Check the date, since Phone 12/04/2003 the Number information is usually removed from report after 5 TCRS/COTTER 03/08/2003 Public None reported 10 Information years, depending on the type information and the laws the province in which you live. Credir Contacts Credir None reported Name Phone Number None reported Inquiries Credir Name None reported Date Inquiry CDN IMPERIAL BANK OF COM 03/20/2004 CITIBANK CANADA 12/04/2003 TCRS/COTTER 03/08/2003 Credir Contacts Credir Name Phone Number If there are companies listed here that you cannot remember doing business with, call them at the phone number listed. Source: TransUnion Financial Consumer Agency Canada 4

7 Equifax's Credit Report CONSUMER CONSUMER RELATIONS RELATIONS P.O. P.O. BOX BOX STATION STATION JEAN JEAN TALON TALON MONTREAL MONTREAL QUEBEC QUEBEC H1S H1S 2Z2 2Z2 Check see if personal information is correct. An unusual increase in the number inquiries can have a negative influence on score. Make sure that you have given all the companies listed here permission see report information. Call these companies at the phone numbers listed if you cannot remember doing business with them. JANE JANE DOE DOE PLEASANT PLEASANT ST. ST. TORONTO TORONTO ONTARIO ONTARIO M2N M2N 1A2 1A2 CONFIDENTIAL CONFIDENTIAL INFORMATION INFORMATION NOT NOT TO TO BE BE USED USED FOR FOR CREDIT CREDIT PURPOSES PURPOSES RE: RE: EQUIFAX EQUIFAX UNIQUE UNIQUE NUMBER: NUMBER: Dear Dear JANE JANE DOE, DOE, Further Further request, request, a disclosure disclosure personal personal file file as as 03/27/01 03/27/01 follows: follows: PERSONAL PERSONAL IDENTIFICATION IDENTIFICATION INFORMATION: INFORMATION: The The following following personal personal identification identification information information is is currently currently showing showing on on file. file. Your Your date date birth birth and and social social insurance insurance number number have have been been partially partially masked masked protect protect personal personal information information (ie: (ie: Birth Birth Date/Age: Date/Age: 01/xx/60, 01/xx/60, Social Social Insurance Insurance Number: Number: 123-xxx-789). 123-xxx-789). FILE FILE OPENED: OPENED: 07/04/92 07/04/92 NAME: NAME: Doe, Doe, Jane Jane CURRENT CURRENT ADDRESS: ADDRESS: PLEASANT PLEASANT ST. ST. TORONTO,ON TORONTO,ON REPORTED: REPORTED: 12/96 12/96 PREVIOUS PREVIOUS ADDRESS: ADDRESS: 2 AVENUE AVENUE ST,TORONTO,ON ST,TORONTO,ON REPORTED: REPORTED: 12/93 12/93 PRIOR PRIOR ADDRESS: ADDRESS: 3 DU DU BOULEVARD,MONTREAL,PQ BOULEVARD,MONTREAL,PQ REPORTED: REPORTED: 07/92 07/92 BIRTH BIRTH /AGE: /AGE: 10/XX/ /XX/1968 SOCIAL SOCIAL INSURANCE INSURANCE NUMBER: NUMBER: 123-XXX XXX-789 OTHER OTHER REFERENCE REFERENCE NAMES: NAMES: CURRENT CURRENT EMPLOYMENT: EMPLOYMENT: EDITOR EDITOR PREVIOUS PREVIOUS EMPLOYMENT: EMPLOYMENT: TRANSLATOR TRANSLATOR PRIOR PRIOR EMPLOYMENT: EMPLOYMENT: CHEF CHEF OTHER OTHER INCOME: INCOME: CREDIT CREDIT INQUIRIES INQUIRIES ON ON YOUR YOUR FILE: FILE: Following Following is is a list list Equifax Equifax members members who who have have received received a copy copy file file for for granting granting or or other other permissible permissible purposes. purposes. Addresses Addresses are are available available by by calling calling Equifax Equifax at at REQUESTOR REQUESTOR NAME NAME TELEPHONE TELEPHONE 03/02/00 03/02/00 CANADA CANADA TRUST TRUST MTG MTG (416) (416) /22/00 02/22/00 TD TD BANK BANK (800) (800) /16/00 01/16/00 BQE BQE NATIONALE NATIONALE (450) (450) The The following following inquiries inquiries are are for for information information only only and and are are not not displayed displayed others. others. They They include include requests requests from from authorized authorized parties parties update update their their records records regarding regarding existing existing account account with with them. them. REQUESTOR REQUESTOR NAME NAME TELEPHONE TELEPHONE 03/23/00 03/23/00 SOC SOC ALCOOLS ALCOOLS (not (not displayed) displayed) (514) (514) /22/00 03/22/00 CANADA CANADA TRUST TRUST MTG MTG (not (not displayed) displayed) (416) (416) /16/00 02/16/00 CMHC CMHC SCHL SCHL (not (not displayed) displayed) (888) (888) /16/00 01/16/00 AMERICAN AMERICAN EXPRESS EXPRESS (not (not displayed) displayed) (416) (416) CONSUMER CONSUMER INTERVIEWS INTERVIEWS AND AND OTHER OTHER SERVICES: SERVICES: You You contacted contacted our our fice fice in in 12/98 12/98 request request a review review file. file. Your own inquiries do not have any effect on score. 5 CREDIT CREDIT HISTORY HISTORY AND/OR AND/OR BANKING BANKING INFORMATION: INFORMATION: The The following following information information was was reported reported us us by by organizations organizations listed listed below. below. Financial Consumer Agency Canada Information Information is is received received every every days days from from most most granrs. granrs. All All account account numbers numbers with with credirs credirs have have been been masked masked protect protect personal personal account account information information and and only only the the last last three three digits digits will will be be displayed displayed (i.e.: (i.e.: xxx...123). xxx...123).

8 03/02/00 CANADA TRUST MTG (416) /22/00 TD BANK (800) /16/00 BQE NATIONALE (450) The following inquiries are for information only and are not displayed others. They include requests from authorized parties update their records regarding existing account with them. REQUESTOR NAME TELEPHONE 03/23/00 SOC ALCOOLS (not displayed) (514) /22/00 CANADA TRUST MTG (not displayed) (416) /16/00 CMHC SCHL (not displayed) (888) /16/00 AMERICAN EXPRESS (not displayed) (416) CONSUMER INTERVIEWS AND OTHER SERVICES: You contacted our fice in 12/98 request a review file. Check see if car loan information is correct. Check payment hisry. R2 means that you made a card payment days after the payment due date. Check see that information about any public records and collections is correct. Note the dates, since this information is usually removed from report after 6 10 years, depending on the laws the province in which you live. CREDIT HISTORY AND/OR BANKING INFORMATION: The following information was reported us by organizations listed below. Information is received every 30 days from most granrs. All account numbers with credirs have been masked protect personal account information and only the last three digits will be displayed (i.e.: xxx...123). GMAC last reported us in 01/01 rating installment account as I1, meaning paid as agreed and up date. The reported balance account was $1000. Your account number: xxx The account is in the subject s name only. Date account opened: 04/99. Credit limit or highest amount advanced: $4400. OF LAST ACTIVITY meaning the last payment or transaction made on this account was in 12/00. Additional comments: au loan. Monthly payments. CANADA TRUST MC last reported us in 01/01 rating revolving account as R1, meaning paid as agreed and up date. At the time the reported balance account was $285. Your account number: xxx Date account opened: 06/99. Credit limit or highest amount advanced $2000. OF LAST ACTIVITY meaning the last payment or transaction made on this account was in 12/00. PREVIOUS PAYMENT STATUS: 30 DAYS: 1 time (s) account previously R2 meaning one payment past due PUBLIC RECORDS AND OTHER INFORMATION: The following information was reported file on the date indicated. A COLLECTION was assigned in 10/96 Commercial Credit by Transamerica Financial in the amount :$2675. Date reported paid: 07/97. Collection status: PAID. OF LAST ACTIVITY was in 04/96. Collection agency reference number: A JUDGEMENT was FILED IN 01/96 in Min Govt Serv. Plaintiff and/or case number: Chrysler Canada Defendant/other info: joint with Dossier. Amount reported: $7525. Status reported: Satisfied. Date satisfied: 09/97. A BANKRUPTCY was FILED IN 08/97 in SC Newmarket. Case number and/or trustee: SYNDIC & ASS. Liabilities: $ Assets: $ Item classification: individual. Information reported on: The subject only. The item is reported as: DISCHARGED. SETTLED: 05/98. Additional comments: absolute discharge from bankruptcy. THE CONSUMER PROVIDED A PERSONAL STATEMENT us in 12/98. The statement has been recorded as follows: RE: BANKRUPTCY, CONSUMER DECLARED BANKRUPTCY DUE TO DIVORCE This statement is be removed from the file in: 12/04. Check payment hisry. l1 means last reported car loan payment was made as agreed. Check see that information about any reported bankruptcy is correct. Check the discharge date, since this information is usually removed from report after 6 or 7 years, depending on the laws the province in which you live. If you gave the -reporting agency a statement explain a particular situation, it will be included here. Source: Equifax Financial Consumer Agency Canada 6

9 Understanding score What is a score? Your score is a judgment about 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 work out scores. The -reporting agencies Equifax and TransUnion use a scale from High scores on this scale are good. The higher score, the lower the risk for the lender. Lenders may also have their own ways arriving at scores. In addition, lenders must decide on the lowest score you can have and still borrow money from them. They can also use score set the interest rate you will pay. What facrs influence score? Credit-reporting agencies and lenders use a mathematical formula figure out score. This formula takes in account various facrs described in report, such as: payment hisry (Do you carry over a balance on card from month month? Have you ever missed a payment on any debts?); any collection or bankruptcy recorded against you (Has a collection agency had collect an unpaid bill from you? Have you ever been bankrupt?); outstanding debts (What is the limit on card? Is spending close limit?); account hisry (How long have you had?); the number recent inquiries made about report (How many times has someone asked about report?); and the type you are using (Do you only have cards, or do you have a mix cards and loans?). These facrs do not all have the same weight in determining score. The most important facrs are payment hisry, whether you have ever declared bankruptcy, and the amount outstanding balances. Although other elements such as mortgage information and any personal inquiries you have made may also be included in report, they usually do not influence score. How long do these facrs affect score? Information that affects score is usually removed from report after a certain period time. The length time that information must stay in report depends on: the province or terriry where you live; and the type information. The charts on the next page show how long it takes before information is removed from TransUnion and Equifax reports. 7 Financial Consumer Agency Canada

10 TransUnion BC AB SK MB ON QC NB NS PEI NL Terr. Years Credit transactions (trades) (from the date last activity or the date opened) Judgments (from the reporting date) Collections (from the reporting date) Secured loans (registered items) (from the date opened) Bankruptcy (from the discharge or reporting date) Registered consumer proposal, Orderly payment debts (from the date satisfied or reported, whichever comes first) Credit counseling (from the date satisfied or reported, whichever comes first) Equifax BC AB SK MB ON QC NB NS PEI NL Terr. Years Credit transactions (trades) (from the date last activity) Judgments (from the date satisfied or deposit) Collection (from the date last activity) Secured loans (registered items) (from the filing date) Bankruptcy (from the discharge date) Registered consumer proposal, orderly payment debts (from the date paid) Credit counseling (from the date paid) Source: TransUnion and Equifax Financial Consumer Agency Canada 8

11 What does a score look like? On the following pages, you will find samples scores from two Canadian reporting agencies: TransUnion and Equifax. If you look at these examples carefully, you will see what kind information a score report contains. This should help you understand own score. The examples shown here are for illustration purposes only. TransUnion's Credit Score This consumer has a score 700. Your score is 700 Based on prile data, this is a numerical depiction worthiness Lowest Highest You are here This consumer has a better score than 36 per cent the population. Your ranks higher than 35.93% the Canadian population Based on score, this is how standing compares the rest Canada. 0% 20% 40% 60% 80% 100% Lowest Highest You are here Your worthiness is Fair Based on score, this is how you may be viewed from a lender's perspective. Lenders see this consumer as a fair risk. Very Poor Poor Fair Good Very Good Here are the p facrs that make score lower: You are here 1. There are o many consumer finance company accounts on report. Having o much available can sometimes harm score. Lenders may feel that you have the ability spend more than you could potentially pay back. You might want consider closing a few accounts or asking have limits reduced. Avoid closing o many accounts - especially the oldest accounts on prile - because it could harm score Your account balances are o high. High levels debt can signal potential lenders that you are spending more than you can afford. It is a good idea use Financial cards Consumer regularly Agency but Canada remember keep balances below 35 percent available limits. If you have balances above percent, you could see score start drop.

12 Very Poor Poor Fair Good Very Good Here are the p facrs that make score lower: You are here These facrs influence this consumer's score. Improvements in any these areas should help increase this consumer's score. 1. There are o many consumer finance company accounts on report. Having o much available can sometimes harm score. Lenders may feel that you have the ability spend more than you could potentially pay back. You might want consider closing a few accounts or asking have limits reduced. Avoid closing o many accounts - especially the oldest accounts on prile - because it could harm score. 2. Your account balances are o high. High levels debt can signal potential lenders that you are spending more than you can afford. It is a good idea use cards regularly but remember keep balances below 35 percent available limits. If you have balances above percent, you could see score start drop. 3. There is not enough recent revolving account information on report. Using accounts regularly is an important part building healthy. Lenders will be able better evaluate worthiness if there is more data about payment and spending behaviour on report. Using a card make a few purchases each month may help improve score. 4. Your loan balances are o high in comparison with loan amounts. High levels debt can signal potential lenders that you are spending more than you can afford. It is a good idea use cards regularly but remember keep balances below 35 percent available limits. If you have balances above percent, you could see score start drop. Equifax's Credit Score Source: TransUnion FICO Score 760 FOR : LOUISE GUIDRY This consumer has a score 760. Your FICO score 760 summarizes the information on Equifax report. FICO scores range between 300 and 900. Higher scores are considered better scores. That is, the higher score, the more favorably lenders look upon you as a risk. Your score is slightly below the average score Canadian consumers, though most lenders consider this a good score. FICO score range This consumer has a better score than 48 per cent the population. 48% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Highest risk Your percentile Lowest risk The Botm Line: What a FICO score 760 means you Lenders consider many facrs in addition score when making decisions. Looking solely at FICO score, however, most lenders would consider this score as good. This Means: It is very unlikely applications for cards or other loans will be turned down, based on score alone. Financial Consumer Agency Canada Most lenders will consider fering you very attractive and competitive rates and 10 terms on loan products. Many lenders will be able provide you with an instant approval status based on score.

13 as account review inquiries (where a lender with whom you have an account has received report) or consumer disclosure inquiries (where you have requested a copy own report) are not considered by the 48% score. The scores can identify "rate shopping" so that one search leading multiple inquiries being reported is usually only counted as a single inquiry. For most consumers, the presence a few inquiries on file has a limited impact on FICO scores. A common misperception is that every single 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% inquiry will drop score a certain number points. This is not true. The impact inquiries on score will vary - depending on overall prile. Your percentile Inquiries will usually have a larger impact on the score for Highest risk Lowest risk consumers with limited hisry and on consumers with previous late payments. The most prudent action raise score over time is apply for only when you need it. As The time Botm passes Line: the What age a FICO most score recent 760 inquiry means will increase you and score will rise as a result, provided you Lenders do not consider apply for many additional facrs in in addition the meantime. Our best score recommendation when making - apply for decisions. only when Looking you solely need it. at FICO score, however, most lenders would consider this score as good. The length time revolving or non-revolving accounts have been established is o short This Means: This reason is based on the age the revolving or non-revolving charge accounts on bureau report It is (the very age unlikely oldest applications revolving or non-revolving for cards charge or other account, loans the will average be turned age down, revolving or non-revolving based charge score accounts, alone. or both). A revolving account such as Visa, MasterCard, or retail sre card Most allows lenders consumers will consider make a fering minimum you monthly very attractive payment and roll competitive or "revolve" rates the remainder and their balance terms the on loan next month. products. Non-revolving accounts such as American Express and Diners Club must be paid Many f in full lenders each month. will be Research able provide shows that you consumers with an instant with longer approval status hisries based have on better score. repayment risk than those with shorter hisries. Also, consumers who frequently open new accounts have It is important greater repayment understand risk than that those different who do lenders not. set their own policies and lerance for risk It when is a good making idea only decisions, apply for so there when is you no single really need "cuff it. Meanwhile, score" used maintain by all low--moderate lenders. balances and be sure make payments on time. Your score should improve as revolving hisry ages. Twenty-seven per cent consumers have scores in the same range as this consumer. Two per cent consumers who fall in the same scoring range as this consumer, fail pay f their loans. 11 The amount owed on non-mortgage related National accounts distribution o high FICO The score measures 30% how much you owe on the non-mortgage related accounts (revolving, non-revolving, and installment) that are listed on bureau report. Research reveals that consumers owing larger amounts on 25% their accounts have greater future repayment risk 27% than those who owe less. (For cards, the tal 20% outstanding balance on last statement is generally the 24% amount that will show in bureau report. Note that even if you pay f 15% 19% cards in full each and every month, bureau report may show the last billing statement balance on those accounts.) Paying f 10% debts and maintaining low balances will help improve score. Consolidating or moving debt around from one account another 11% will usually not, however, raise score, since the 5% same amount is still owed. 0% 4% 4% 6% 5% Proportion loan balances up 549original loan amounts is o high Simply having installment loans and owing money on them does not mean you are a high-risk borrower. To the contrary, paying down installment loans FICO is a good score sign range that you are able and willing manage and repay debt, and evidence successful repayment weighs favorably on rating. The FICO score examines Understanding many the aspects graph. current installment loan and revolving balances. One measurement is compare This chart outstanding shows the installment percentage balances people against who the score original in loan specific amounts. FICO Generally, score ranges. the closer For example, the loans are about being 4% fully Canadian paid f, consumers the better the have score. a FICO Compared score between other measurements 550 and 599. indebtedness, Your score however, 760 this places has you limited in the influence on the range, FICO along score. with 27% the tal population. (Note that the score Paying ranges down shown installment above are loans provided on a timely for basis information, generally reflects but they well on do not necessarily score. But correspond if you want any improve particular lender's score, one policies way for do extending it is try.) pay the loans, (especially non-mortgage installment loans) down as quickly as you can. Summary facrs affecting score How The FICO Lenders score seeis you calculated based on the information contained in Equifax hisry. While A knowing majority lenders actual score use FICO is a good scores start, as one understanding method estimate the key facrs an applicant's affecting risk. FICO People score is with much high FICO more scores important. are These likely facrs repay will loans provide and you direction cards more on how consistently you can than increase people or maintain with low FICO FICO scores. Although score over FICO time. scores are remarkably predictive, no one can predict with certainty whether or not an applicant will repay a account. The negative facrs listed below are reasons why FICO score is not higher. Your focus on these facrs As will a help group, you the raise consumers FICO in score score over range, time. These , negative have a facrs delinquency are provided rate in 2%, order as illustrated impact in the graph. score, This the first means facr that listed for every indicates 100 borrowers where you in stand this range, gain approximately the most points 2 will over default time and on a so loan, on. file for bankruptcy, or fall 90 days past due on at least one account in the next two years. You have recently been seeking as reflected by the number inquiries posted on file in the last 12 Most months lenders would consider consumers in this score range as very low risk. Research shows that consumers who are seeking new accounts are riskier than consumers who are not seeking. Inquiries are the only information Delinquency lenders rates have by that FICO indicates score a consumer is actively seeking. There are different types inquiries that reside on bureau report. The score only considers those inquiries 100% that were posted as a result you applying for. Other types inquiries, such as account review inquiries (where a lender with whom you have an account has received report) 80% or consumer disclosure inquiries (where you have requested a copy own report) are not considered by the score. The scores can identify 78% 60% "rate shopping" so that one search leading multiple inquiries being reported is usually only counted as 60% a single inquiry. For most consumers, the presence a few inquiries on 40% file has a limited impact on FICO scores. A common misperception is that every single inquiry will drop score a certain number points. 39% This is not true. The impact inquiries on score will vary - depending 20% on overall prile. Inquiries will usually have a larger impact on the score for 23% 12% consumers with limited hisry and on consumers with previous late payments. 5% 2% The most prudent 0% 1% action raise score over time is apply for only when you need it. up As time passes the age most recent inquiry will increase and score will rise as a result, provided you do not apply for additional in the meantime. FICO Our score best recommendation range - apply for only when you need it. Understanding the graph: This chart demonstrates the delinquency rate (or risk) associated with selected The length ranges time the revolving FICO score. non-revolving In this illustration, accounts the have delinquency been established rate the is o percentage short borrowers who This reason reach 90 is based days past on the due age or worse the (such revolving as bankruptcy or non-revolving or account charge charge-f) accounts Financial on Consumer any Agency account bureau Canada over report a (the two-year age period. oldest The graph revolving clearly or non-revolving illustrates the predictive charge account, power the the average FICO scores, age which revolving is why lenders or non-revolving rely them charge for accounts, decisions. or both). A revolving account such as Visa, MasterCard, or retail sre card allows consumers make a minimum monthly payment and roll or "revolve" the remainder their Rate delinquencies

14 Understanding the graph. This chart shows the percentage people who score in specific FICO score ranges. For example, about 4% Canadian consumers have a FICO score between 550 and 599. Your score 760 places you in the range, along with 27% the tal population. (Note that the score ranges shown above are provided for information, but they do not necessarily correspond any particular lender's policies for extending.) Summary facrs affecting score The FICO score is calculated based on the information contained in Equifax hisry. While knowing actual score is a good start, understanding the key facrs affecting FICO score is much more important. These facrs will provide you direction on how you can increase or maintain FICO score over time. The negative facrs listed below are reasons why FICO score is not higher. Your focus on these facrs will help you raise FICO score over time. These negative facrs are provided in order impact score, the first facr listed indicates where you stand gain the most points over time and so on. These facrs have influenced this consumer's score Improvements in any these areas should help increase this consumer's score. You have recently been seeking as reflected by the number inquiries posted on file in the last 12 months Research shows that consumers who are seeking new accounts are riskier than consumers who are not seeking. Inquiries are the only information lenders have that indicates a consumer is actively seeking. There are different types inquiries that reside on bureau report. The score only considers those inquiries that were posted as a result you applying for. Other types inquiries, such as account review inquiries (where a lender with whom you have an account has received report) or consumer disclosure inquiries (where you have requested a copy own report) are not considered by the score. The scores can identify "rate shopping" so that one search leading multiple inquiries being reported is usually only counted as a single inquiry. For most consumers, the presence a few inquiries on file has a limited impact on FICO scores. A common misperception is that every single inquiry will drop score a certain number points. This is not true. The impact inquiries on score will vary - depending on overall prile. Inquiries will usually have a larger impact on the score for consumers with limited hisry and on consumers with previous late payments. The most prudent action raise score over time is apply for only when you need it. As time passes the age most recent inquiry will increase and score will rise as a result, provided you do not apply for additional in the meantime. Our best recommendation - apply for only when you need it. The length time revolving or non-revolving accounts have been established is o short This reason is based on the age the revolving or non-revolving charge accounts on bureau report (the age oldest revolving or non-revolving charge account, the average age revolving or non-revolving charge accounts, or both). A revolving account such as Visa, MasterCard, or retail sre card allows consumers make a minimum monthly payment and roll or "revolve" the remainder their balance the next month. Non-revolving accounts such as American Express and Diners Club must be paid f in full each month. Research shows that consumers with longer hisries have better repayment risk than those with shorter hisries. Also, consumers who frequently open new accounts have greater repayment risk than those who do not. It is a good idea only apply for when you really need it. Meanwhile, maintain low--moderate balances and be sure make payments on time. Your score should improve as revolving hisry ages. The amount owed on non-mortgage related accounts is o high The score measures how much you owe on the non-mortgage related accounts (revolving, non-revolving, and installment) that are listed on bureau report. Research reveals that consumers owing larger amounts on their accounts have greater future repayment risk than those who owe less. (For cards, the tal outstanding balance on last statement is generally the amount that will show in bureau report. Note that even if you pay f cards in full each and every month, bureau report may show the last billing statement balance on those accounts.) Paying f debts and maintaining low balances will help improve score. Consolidating or moving debt around from one account another will usually not, however, raise score, since the same amount is still owed. Proportion loan balances original loan amounts is o high Simply having installment loans and owing money on them does not mean you are a high-risk borrower. To the contrary, paying down installment loans is a good sign that you are able and willing manage and repay debt, and evidence successful repayment weighs favorably on rating. The FICO score examines many aspects current installment loan and revolving balances. One measurement is compare outstanding installment balances against the original loan amounts. Generally, the closer the loans are being fully paid f, the better the score. Compared other measurements indebtedness, however, this has limited influence on the FICO score. Paying down installment loans on a timely basis generally reflects well on score. But if you want improve score, one way do it is try pay the loans, (especially non-mortgage installment loans) down as quickly as you can. How Lenders see you Source: Equifax A majority lenders use FICO scores as one method estimate an applicant's risk. People with high FICO scores are likely repay loans and cards more consistently than people with low FICO scores. Although FICO scores are remarkably predictive, no one can predict with certainty whether or not an Financial Consumer Agency applicant Canada will repay a account. 12 As a group, the consumers in score range, , have a delinquency rate 2%, as illustrated in the graph. This means that for every 100 borrowers in this range, approximately 2 will default on a loan, file

15 Checking report and score How can you check report and score? It's a good idea request a copy report from the three -reporting agencies at least once a year verify that personal information is up date, that financial information is correct, and ensure that you have not been the victim identity fraud. Because information can be kept by more than one -reporting agency, and because those agencies do not necessarily share information, it's important check all three reports carefully. Credit report Although there are many ways order report, such as by phone, fax or , the easiest and safest methods are by mail or by Internet. By mail If you make request in writing and send it by mail, the -reporting agencies will provide you, by mail, with a free copy report. It is important, however, that in request you include a copy two pieces I.D. Contact the -reporting agencies find out which pieces I.D. are acceptable. By Internet 1 You can also order report through the reporting agencies' websites. This method is faster since you will receive report online only a few minutes after you made the request. However, -reporting agencies charge a fee for providing you with an online copy report. Credit score The only way you can obtain score is online, through the -reporting agencies' websites 1. The fee charged for score might be higher than the cost receiving only report online. However, the cost score will include an online copy report. You will receive score (and report) online a few minutes after you have made the request. To get copies report and score, contact Equifax, TransUnion and Northern Credit Bureaus Inc., at the following coordinates: Equifax Canada National Consumer Relations P.O. box 190, Station Jean-Talon, Montreal, Quebec H1S 2Z2 Tel. (ll-free): Fax: (514) consumer.relations@equifax.com Web site: TransUnion Canada All provinces except Quebec: Consumer Relations Centre P.O. Box 338 LCD 1 Hamiln, Ontario L8L 7W2 Tel. (ll-free): Fax: (905) Web site: 1 Credit reports and scores are not available Nova Scotia residents on the Internet. 13 Financial Consumer Agency Canada

16 For Quebec Residents: TransUnion (Echo Group) 1600 Henri Bourassa Boul Ouest Suite 210 Montreal, Quebec H3M 3E2 Tel. (ll-free): Fax: (905) Web site: Northern Credit Bureaus Inc. 336 Rideau boulevard Rouyn-Noranda, Quebec J9X 1P2 Fax (ll-free): Web site: How can you get errors corrected? When you get report, make sure the information in it is correct and up date. If you believe that the information in report is incorrect, follow these steps. 1. Contact the -reporting agency Before the -reporting agency can make a correction on report, it will have contact the financial institution that reported the information see if an error was made. If the financial institution agrees that an error was made, the -reporting agency has 30 days (with the exception Alberta that allows 90 days) correct report. If the financial institution says that the information reported is correct but you are still not satisfied, you can submit a brief statement the -reporting agency, explaining situation. This statement will be added report. 2. Contact financial institution To avoid any delays in getting errors on report corrected, you can contact the financial institution that provided the incorrect information the -reporting agency and ask the financial institution follow up with the -reporting agency. If the error came from financial institution and the institution will not correct the error, ask for information on its complaint-handling process. Financial institutions that are regulated by the Government Canada are required, by law, have a process in place resolve disputes between consumers and financial institutions. To obtain information on financial institution's complaint-handling process, contact the Financial Consumer Agency Canada (FCAC) ll-free, at , or visit FCAC's Web site at the following Web address: How can you improve score? If score is not as high as you think it should be, make sure that the information in report is correct. If it is correct, read report carefully find out which facrs are most likely having a negative influence on score, and then work improve them. Here are some tips on how improve score: Always pay bills on time. Although the payment utility bills, such as phone, cable and electricity, is not recorded in report, some cellphone companies may report late payments the - Financial Consumer Agency Canada 14

17 reporting agencies, which could affect score. Try pay bills in full by the due date. If you aren't able do this, pay at least the minimum amount shown on monthly statement. Try pay debts as quickly as possible. Don't go over the limit on card. Try keep balance well below the limit. The higher balance, the more impact it has on score. Reduce the number applications you make. If o many potential lenders ask about in a short period time, this may have a negative effect on score. However, score does not change when you ask for information about own report. Make sure you have a hisry. You may have a low score because you do not have a record owing money and paying it back. You can build a hisry by using a card. See the next section find out how. Building a hisry How can a card help? It is important have a hisry. If you don't have a hisry, you can begin building one by using a card - as long as you use the card wisely! When you apply for a card, the card issuer will check hisry with one or more the -reporting agencies, find out whether or not you are likely pay back the money you borrow with card. If card application has been approved and you start using card, the issuer reports any activity on the card the -reporting agencies. For example, the issuer will tell the -reporting agencies what outstanding balance is and whether or not you are making the required monthly payments on time. This helps you build a hisry. If you are having difficulty obtaining a card because you have no hisry, you are new the country, you have recently filed for bankruptcy or you have had problems in the past, a secured card might be appropriate for you. To obtain a secured card, you will need deposit a sum money with the card issuer. Your limit is normally set as a percentage deposit. Making all secured card payments on time can help you build a hisry, or rebuild a poor one. Once hisry is considered satisfacry by a issuer, you may be eligible for a conventional type card, such as a lowrate or standard card. For more information about secured cards, consult FCAC's publication entitled Credit Cards and You. How can you maintain a good hisry? There are a number things you can do build and maintain a good hisry. Here are some important do's and don'ts. Do's Pay bills on time. Try pay bills in full by the due date. If you aren't able do this, pay at least the 15 Financial Consumer Agency Canada

18 minimum amount shown on monthly statement. Contact credirs if you are having trouble making payments. Make sure that monthly account statement is correct. Read the statements and other material you receive from card company carefully. Keep up date on any fee increases or changes in card's terms and conditions. Deal with companies you know and trust. Get a copy report from all three -reporting agencies at least once a year and make sure they are accurate. Don'ts Don't accept or use any form until you understand and are comfortable with its terms and conditions, avoid any misunderstandings between you and the issuer. Don't wait report any unauthorized transactions on account. Contact issuer immediately if bill includes items you did not buy. Don't go over the limit on card. We are the Financial Consumer Agency Canada (FCAC) The Financial Consumer Agency Canada (FCAC) ensures compliance with the consumer protection laws that apply banks and federally incorporated trust, loan and insurance companies. FCAC also provides consumers with accurate and objective information about financial products and services, and informs Canadians their rights when dealing with financial institutions. Information All our information, services and publications are available you free charge. Our publications help you shop around and choose the best financial product or service for needs. Protection FCAC makes sure that federal financial institutions such as banks, trust, loan and insurance companies respect the laws and agreements that protect you. Call us for more information about rights. Contact info: Telephone: Monday Friday, 8:30 a.m. 6:00 p.m., Eastern Time Toll-free: (FCAC) Fax: Web site: info@fcac.gc.ca Financial Consumer Agency Canada 16