# data[].attributes.headline
Credit rating: What goes into the analysis that results in a credit rating?

# data[].attributes.subject
Credit rating: What goes into the analysis that results in a credit rating?

# data[].attributes.body
By: Melissa Harris

# data[].attributes.body
This page will go over how credit scores are developed and what actions can be made to improve you credit score. I will be looking into the numerical system as well as the letter system used to represent the risk you pose to potential lenders.

# data[].attributes.body
This image represents the ranking system that is used in determining how to describe your credit score.

# data[].attributes.body
This two-minute video gives a detailed report of how our credit score is calculated. It states the five factors that are responsible for the makeup of your current credit score. It also offers some tips on how to keep your credit under control. It offers tips to keep in mind the fact that 65% of our credit score is made up of our payment history and the amount of debt owing. So, these two factors are extremely important and need to be watched at all times.

# data[].attributes.attachment_link.description
www.darbenokes.com - Darbe Nokes - The Credit Gal goes over how your credit score is calculated.

# data[].attributes.body
This three-minute video goes through the steps and processes that banks go through when determining weather, they grant people a loan. I picked it because it was able to completely explain the banks lending process in a quick and efficient manner. It explained that when the bank investigates an applicant credit they are only willing to lend money to people with a higher credit score because it indicates that you are low risk in returning and paying off your loan.

# data[].attributes.attachment_link.title
Your Credit Score in Canada Explained - And How to Improve It!

# data[].attributes.body
This video was able to quickly and effectively outline three steps that will help reduce your viewed risk to potential lenders. It also provides examples on when and how we should be looking at our credit score. They then go into how to spot good habits and what needs to be done to kick bad habits. The one thing I found most interesting is the insight that he was giving regarding actions that credit company’s seeing to be higher risk, like changing your address or job every six months or any more frequently.

# data[].attributes.attachment_link.title
How to improve your credit score in Canada

# data[].attributes.body
this website gives a full explanation into what is a credit report, a credit score, and credit rating. It allows the viewer to fully understand how your report is first developed and what you need to do to ensure that completely understand the terminology that is used on your credit report/file. I picked this website because it gives us the definition on all credit ratings from R0-R9, as well as what each type of loan is represented as when it appears in your credit report.

# data[].attributes.attachment_link.title
Credit Report, Credit Score and Credit Rating - Office of Consumer Affairs

# data[].attributes.attachment_link.description
Credit report, credit score and credit rating

# data[].attributes.body
this site gives an insight on the full breakdown on how our credit score is developed. I found that there are seven main things that are looked at during this process: payment history, delinquencies, balance-to-limit ratio, recent inquiries, length/history of accounts, variety of credit accounts, and having too many accounts. This website will also tell you how long your current credit would be kept on your record. And how your credit rating will affect your life in the long run. Lastly it gives you a look at what is put into your credit file.

# data[].attributes.attachment_link.title
Credit Rating 101 - Debt Canada: Your Canadian Credit Education Centre

# data[].attributes.attachment_link.description
We have collected information from both of the consumer reporting agencies (credit bureaus), as well as our own research to try to provide a full picture on credit files and credit scores, including those little known "insider" secrets.

# data[].attributes.body
this website is a free source to determine and keep an eye on your current and continually changing credit score. It not only tells you what you score is, but it also informs you what is being looked at to determine your score. It also gives you recommendations on how to improve your score and offers possible routes for you to take when looking for loans or additional credit. The website also offers a seven-day course to help educate people on how to maintain a healthy credit score.

# data[].attributes.attachment_link.readable_text
Credit. We love it, we hate it, and for many of us, we use it on a consistent basis. So much of a consistent basis, that it's probably important that we know as much about it as possible. After all, these magical numbers can define our financial status in the eyes of many.

You're probably thinking, why should I care? Well, we're going to tell you.

When we use credit, and neglect to focus on the importance behind responsible use, there are many consequences that could have an effect on your credit score.

First things first: do you know your credit score? If not, take a minute to go to Borrowell and get your score for free. Then come back here.

Whether you're currently dealing with a good, or bad score, it's important to get a feel for ways to keep it good, all the while adjusting your financial lifestyle to make it better!

Trust us, we wish bad credit scores didn't exist as much as the next guy, but luckily for you, we can help you improve them for the better (and in a timely manner, too).

So let's break down what a credit score really is, and then learn how to go from "good" to "great".

Credit scores can range from 300-900, and the higher the score, the better.

But what do those numbers even mean? In Canada, we have two credit reporting agencies -Equifax and TransUnion. They collect information on consumers like us and how we pay our bills, when we pay our bills, and how long it takes us to pay our bills before recording this in our files.

Did you know that the average credit score in Canada is 749? Are you above or below that?
What can having a good credit score do for you?
The fact that you have joined us (hi!) at Borrowell, means you are clearly preparing to attack a large financial goal. And we are pumped to help you get there.

A good credit score can help you attain many things you've been putting off for months... even years. Things such as: paying off some debt, buying a home or preparing for the perfect wedding. Your credibility as someone who desires a loan relies on this all important number. And we are ready to get you to the number you need to hit.
There are five main things that impact your overall score:

Your payment history

How much credit you have available

Length of credit history

Number of inquiries (to receive further credit)

Types of credit (loans, credit cards, etc.)

Each time a payment is made more than 30 days late, a delinquency will be on your report. These late payments can drastically affect your credit score.
So what can you do to improve your credit score?
Two easy steps...

If you haven't been making consistent payments, start today! Set up preauthorized payments on all of your bills, especially the ones that report to the bureau (mortgages, student loans, auto loans, and credit cards). These can also include your utilities, cell phone, insurance, etc. Oh, and surprise, surprise - paying your bills on time accounts for 35% of your credit score.

Try to keep at least 25% of your credit limit available at all times. The amount of credit you have available is more of a factor than you might think. Often times, we run up balances our cards unaware of the damages it can cause. So what is credit utilization? Credit utilization is the ratio of your credit card balance to your credit limit as listed on your credit report. So if you have a combined credit limit of $10,000, keep your total balance under $7,500.
What is credit utilization?
Credit utilization is the ratio of your credit card balance to your credit limit as listed on your credit report. So if you have a combined credit limit of $10,000, keep your total balance under $7,500.

These small changes can start to take effect TOMORROW. By keeping your credit and financial security consistent (such as making payments on time and regularly), you will be seen as more responsible.

This post is part 1 of Borrowell's Credit Score Course. Know someone you'd like to invite to take Borrowell's Credit Score Course? Click here to email them an invitation to our course or click here to post to Facebook.

Also read:

# data[].attributes.attachment_link.title
What Is A Credit Score | Improving Credit Rating | Borrowell

# data[].attributes.attachment_link.description
Credit. We love it, we hate it, and for many of us, we use it on a consistent basis. So much of a consistent basis, that it's probably important that we know as much about it as possible. After all, these magical numbers can define our financial status in the eyes of many.

# data[].attributes.body
This image is a representation of all terms and linking industry’s that relate to all aspects of how credit scores are developed.

# data[].attributes.body
Word Document attached.

# data[].attributes.attachment_link.title
Assign 2 - Post 12 Reflective response.docx

# data[].attributes.body
This image shows how much interest would be charged for a $25,000 loan. The rate changes based on you credit score.