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A credit score is a number that basically rates how well you handle your money. Many young adults don't realize but your score is important for many things like buying a house or even getting a phone! If your score needs work, you've come to the right place! Here are some tips and tricks tp help increase your score

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A credit score is a number between 300-900 that is assigned to you by lenders that assesses one's capacity to repay a loan. 900 would be the highest score you can get and the image below shows the different levels your credit score can be based on Borrowell.

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This video is a short introductory  video talking about the importance of maintaining a good credit score. It gives you the definition of a credit score, the different factors that affect your credit score and why its important to maintain a good score.

One important thing to remember from this video is that your credit score is not only important when making big purchases but it can also be used in the hiring process. Some employers use your credit score as a part of your overall assessment of your character. So its important to make sure you keep a good credit score from a young age!

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You can tell a lot about a person by the food they eat, the clothes they wear or the car they drive.

Not because those items will reveal much about a person's character but because those meals, outfits and vehicles were probably paid for with a credit card. And if someone has a credit card, that means they've got a credit score.

Credit scores are three-digit numbers with far-reaching consequences. They are essentially a snapshot that tells people and organizations how good someone is at paying back debt. The average Canadian scores around 600, with numbers in the 700 and above considered " very good."

Credit scores can go up and down depending on your financial situation. Racking up student loans, signing up for multiple credit cards or taking a line of credit all impact your score.

But ultimately, how much and how quickly you pay back that debt is what impacts that magic number. Maxing out your credit, missing payments and carrying balances month-to-month will all lower your score. Paying back whatever money you owe is what builds it back up.

The average Canadian scores around 600, with numbers in the 700 and above considered "very good."

And while that three-digit number isn't as vital to have memorized, say like the CVV on the back of your credit card or your area code, it becomes crucial when you need to make a big purchase like buying a home or a car. Some companies may even look into it to see how responsible you are with spending when applying for a job.

Canadians curious about their credit score have essentially two choices if they want to find it out. Neither are free but Equifax and TransUnion both offer online access, though the former was recently hacked in a data breach.

Now that you know what a credit score is and where to find it. The next step may be to build it up or keep in tip-top shape. To do that, check out the video above for some helpful financial advice.
More financial advice from Wiser Wallet: Also On HuffPost:

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This Is The Average Canadian's Credit Score. Where Do You Rank?

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You can tell a lot about a person by the food they eat, the clothes they wear or the car they drive. Not because those items will reveal much about a person's character but because those meals, outfits and vehicles were probably paid for with a credit card.

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This is a great resource that I use all the time! It is a FREE way for you to check your credit on a intermittent basis.  It is a secure Canadian based company that allows you to check your credit score from equifax and it also gives you a full detailed report. What's also great about this resource is that it gives you personalized tips on how you can increase your credit score.

One thing I learned recently from Borrowell, is that you will get occasional emails advising you when your credit score has changed. I find that its a great tool because it reminds you to pay your bills on time and be cognizant of how you spend your credit cards!

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Understanding Payment Deferrals And Credit Scores During COVID-19

If you are experiencing reduced or limited income, you could be finding it hard to make monthly payments on time. However, defaulting or missing a due-date can cause a problem down the road, as payment history makes up 35% of your credit score. As a way to provide support during the coronavirus pandemic, big banks, lenders and governments are offering financial relief to help those struggling to make payments due to COVID-19.

Learn More

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Understanding Payment Deferrals And Credit Scores During COVID-19 If you are experiencing reduced or limited income, you could be finding it hard to make monthly payments on time. However, defaulting or missing a due-date can cause a problem down the road, as payment history makes up 35% of your credit score.

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The two main credit reporting services in Canada that major banks use.  This video on Equifax goes through the details of a credit report and what is a credit score. You can use this website to view your credit report and it will cost you 25 dollars to view your report. The video explains how your credit score can affect the interest rates that are offered to you.

An important service Equifax offers is notification in case of identity theft. It may be an important service to have if you ever think that you're personal information is compromised. Their service offers identity theft protection.

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Equifax Credit Report & Equifax Credit Score Overview Video | Equifax Canada

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Find out what's in your Equifax credit report & Equifax credit score - watch this video today!

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This interview was done by CBC Canada where they talk to 3 different people with different financial backgrounds to see what different scores are out there and what  those scores actually really mean. They check their scores on different websites and go out into the real world with those scores to see what those scores mean in action.

This interview is really insightful because this video shows us different companies have different scores based on their own calculation. Now which score a lendor will use is also uncertain, it varies from lendor to lendor. I never knew that ! So it's good because now I'll never pay to see my score. I can use the free resources to check in my score to just assess my situation and make sure I'm in a financially sound position every once in a while.

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Equifax, TransUnion, Credit Karma, Borrowell: Should you trust your credit score? (Marketplace)

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https://www.rbcroyalbank.com/dms/olb/credit-score/index.html
This tool is free and available to all RBC clients. It's a great way for users to check how certain financial decisions might impact their scores. For instance if you were to get a new credit card, the dashboard will show how it can impact their credit score.  The best thing  about this tool is that it doesn't affect your credit score!

I personally bank with RBC so I love the fact that I can add in a potential credit card that I'm planning on getting, weigh the risks and benefits to see if its actually worth it for me to get it.

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This is a tough question to answer! The answer is actually yes and no. The longer you have a credit card and the longer you use it at 35% of its limit, the more it will increase your score. The more unused credit you have, the higher the score. However when you apply for a credit card, it also decreases your score when they do a hard check. So applying for many credit cards is not the best idea!

A new thing I learned in this course is that you can diversify the types of borrowing that you do. Mortgages and car loans also fall under building credit so if you are paying off a car loan or a mortgage, its also building your credit.

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This is a great reliable source (the federal governement! )  for Canadians to use when learning on how you can improve your credit score. It goes over 5  ways that you can increase your credit score on a daily basis.
A new thing I learned from this website is that you should actually consider how much of your credit card that you are using and try to keep it to 35%. For example , if you have a credit card with a limit of 10,000 you shouldn't have a balance of more than 3500 at any given time as it is considered high risk!

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Monitoring your payment history

Your payment history is the most important factor for your credit score.

To improve your payment history:

always make your payments on time

make at least the minimum payment if you can't pay the full amount that you owe

contact your lender right away if you think you'll have trouble paying a bill

don't skip a payment even if a bill is in dispute

Get electronic alerts from your financial institution

Your financial institution may send you an electronic alert when the credit available on your credit card falls below a certain amount.

These alerts may help you manage your day-to-day finances, such as your credit payments.

Learn more about these electronic alerts.

Using credit wisely

Don't go over your credit limit. If you have a credit card with a $5,000 limit, try not to go over that limit. Borrowing more than the authorized limit on a credit card may lower your credit score.

Try to use less than 30% of your available credit. It's better to have a higher credit limit and use less of it each month.

For example, suppose you have a credit card with a $5,000 limit and an average borrowing amount of $1,000. Your credit usage rate would be 20%.

If you use a lot of your available credit, lenders see you as a greater risk. This is true even if you pay your balance in full by the due date.

Improving your credit history

The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new.

If you transfer an older account to a new account, credit bureaus consider the new account as new credit.

For example, some credit card offers come with a low introductory interest rate for balance transfers. The new card on which you transfer your current balance is considered a new credit product.

Consider keeping an older account open even if you don't need it. Use it from time to time to keep it active. Check your credit agreement to make sure there is no fee if you keep the account open.

Limiting your number of credit applications or credit checks

Credit inquiries, also known as credit checks, count toward your credit score. It's normal and expected that you'll apply for credit from time to time. When lenders and others ask a credit bureau for your credit report, they record it as an inquiry.

If there are too many credit checks on your credit report, lenders may think that you're:

urgently seeking credit

trying to live beyond your means

To control the number of credit checks on your report:

limit the number of times you apply for credit

get your quotes from different lenders within a 2-week period when shopping around for a car loan or a mortgage. Credit bureaus will combine and treat your inquiries as a single inquiry for your credit score

apply for credit only when you really need it

"Hard hits" versus "soft hits"

"Hard hits" are credit checks that appear on your credit report and count toward your credit score. Anyone who views your credit report will see these inquiries.

Examples of hard hits include:

credit card applications

some rental applications

some employment applications

"Soft hits" are credit checks that appear on your credit report. They're recorded on your credit report but only you can see them. These credit checks don't affect your credit score.

Examples of soft hits include:

requesting your own credit report

businesses checking your credit report to update their records about an existing account you have with them

Diversifying your credit

Your score may be lower if you only have one type of credit product, such as a credit card.

It's better to have a mix of different types of credit, such as:

A mix of credit products may improve your credit score. Make sure you're able to pay back any money you borrow. Otherwise, you might end up hurting your score by taking on too much debt.

Related links

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credit score; credit check; improving credit score; credit score check; how to build credit; how to improve your credit score; how to increase your credit score; how to raise credit score; how to increase my credit score; how to improve my credit score; how to build your credit score; how can i increase my credit score; how to get a better credit score; how to build a good credit score

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What affects your credit score and how to improve it.

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What happens if my file goes to collections?

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What happens if my file goes to collections?

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This video goes through what exactly happens when your credit card or your bills end up at the collections agency. It talks about how it affects your credit score and even discusses bankruptcy. It talks about how long it will take for the bankruptcy to  be removed from your credit file.

I didn't know that it takes 7 years for a bankruptcy to be removed from your credit report. It is a very long time for someone to have to recover from a bankruptcy. If you have an account that is in collections it can dock 30-50 points off your credit report. It is importnat at this point to prioritize accounts that are going to go to collection and pay them off first.

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The length of time it will take to repair your credit score will depend on what kind of marks are on your report. It's important to know how long the process of repairing credit will take so that you can plan ahead effectively.

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How Long Does it Take to Improve Your Credit Score?

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The length of time it will take to repair your credit score will depend on what kind of marks are on your report. It's important to know how long the process of repairing credit will take so that you can plan ahead effectively.

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Credit Canada is a website that goes over step by step on how you can assess your credit score, how to read your report, and how to budget to increase your score accordingly. They have counselors that are available to go through  your finances with you and help you find ways that you can improve your credit rating.

Interestingly they have credit ratings breakdown that goes through what each code on your credit report mean. For example, R0 means that the credit account is too new to assess.

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How to Improve Your Credit Score | Credit Canada Debt Solutions

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Get help with your credit score from the professionals at Credit Canada. We can help improve your score the right way so you can move on.

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1.  What did you learn about your topic that surprised you the most?
I think the idea that you should only be using 35% of your total credit limit was really surprising.  Intuitively you would think that as long as you can pay off whatever balance you use, it should be fine but even if you can pay it off , you are considered a big risk when you use a high amount of your available credit.
2. Provide a real-life example of how this topic is relevant or interesting for you.
This is important for me with my regular credit card use because now instead of just using one credit card and maxing it out each month, I'm going to spread it across two or three of my cards so that I stay within the 35% limit for each card
3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?
For family members and friends, I think what i would want to pass on is the importance of paying off your cards on time, and starting to build your credit at young age is important for major life events like getting a job in some instances and also buying your home!