Your credit score plays a crucial role in your financial health — it reflects your creditworthiness and influences how much you can borrow, the interest rate you’ll pay, and the fees you may incur.

Your score is based on your credit report, which tracks:

1. ➤ Payment history
2. ➤ Total debt owed
3. ➤ Length of credit history
4. ➤ Types of credit used
5. ➤ Frequency of credit applications
6. 
   

In Canada and the U.S., most lenders use the FICO credit score system (300–900).

1. ➤ A higher score increases your chances of mortgage approval and better loan terms.
2. 
   
3. ➤ A lower score makes borrowing harder and more expensive.
4. 
   

Example:

1. ➤ With a score of 750+, you may qualify for a mortgage with a low interest rate and smaller down payment — saving you thousands over time.
2. 
   
3. ➤ With a score below 600, you may face higher rates, larger down payments, and higher monthly costs.

✅ Pay bills on time, every time.

✅ Keep credit card balances below 30% of your limit.

✅ Apply for new credit only when necessary.

✅ Check your credit report regularly and dispute errors.

✅ Build a long credit history (consider a secured credit card if you’re just starting).