![]() The credit bureaus, who have access to your information from financial institutions, use their own proprietary algorithms and weigh accounts and loans differently. That’s because a credit score isn’t a static number and there are several factors that go into calculating it. Even if you look at TransUnion and Equifax-the two main credit bureaus where you can access your credit score-the number might vary slightly. In fact, your credit score may differ from one week to the next. What Goes Into a Credit Score?Ĭredit scores fluctuate. These can include cards with lower interest rates, higher earn rates for cash back and points and perks like travel insurance, mobile device insurance and travel upgrades.įrom here, the company will decide whether to approve or deny your application. With a higher credit score, you have a better chance of getting a credit card and may have more options of cards to choose from. This includes checking your credit score. Once the application has been completed, the credit card company will do a background check, called a “hard inquiry” into your creditworthiness. You need to be a citizen or resident, have the necessary identification, a source of income and be the age of majority in your province or territory. ![]() When you apply for a credit card in Canada, credit card companies will first look at a few things. In fact, your credit score makes you “the product” that is shopped around to lenders, who then make a decision on your creditworthiness. However, Hayes says that Canadians need to rethink the point of credit scores, explaining that they aren’t for the individual’s benefit. ![]() That means lenders consider you to be a lower risk and are more likely to approve you for a credit card.ĭoug Hoyes, co-founder of Hoyes, Michalos & Associates Inc., acknowledges that credit scores play a role in many transactions. The higher your number, the better your creditworthiness. ![]() This number is used by lenders to determine your creditworthiness or, in other words, your ability to pay your loan back on time. What Credit Score Is Needed For A Credit Card?Ī credit score is a three-digit number between 300 and 900. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. These “affiliate links” may generate income for our site when you click on them. Second, we also include links to advertisers’ offers in some of our articles. This site does not include all companies or products available within the market. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This comes from two main sources.įirst, we provide paid placements to advertisers to present their offers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective.
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