Q:

How is your credit score determined in Canada?

A:

Quick Answer

In Canada, a credit score is determined by payment history, the amount of credit owed, credit usage, credit experience, acquisition of new credit and types of credit established, according to the Canadian Imperial Bank of Commerce. Scores range from 300 to 900 with an R rating from 1 to 9.

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How is your credit score determined in Canada?
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Full Answer

TransUnion Canada and Equifax Canada are the two credit bureaus in Canada. The R rating is assigned by lenders depending on a person's payment history, with an R1 rating meaning debts are paid on time within 30 days and an R9 rating being the worst, according to the Canadian Imperial Bank of Commerce. The exact formula that credit bureaus use to calculate credit ratings is a secret, according to CBC News.

Canadians can ask for a free credit report by mail from the credit bureaus by sending in photocopies of two pieces of identification and basic background information, according to CBC News. Reports by mail come in approximately two to three weeks. However there is no free service to access a person's actual score. To receive an instant online credit report from TransUnion, the current rate as of January of 2015 is $14.95 and $15.50 from Equifax. For the report to also include the credit score, the current rate is $22.90 for TransUnion and $23.95 for Equifax. More than 21 million Canadians have credit reports.

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