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What are the factors that make up your credit score?
2 October

What are the factors that make up your credit score?

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Car Loans Canada

Below are some of the major factors that make up your Credit Score:

Number of Recent Inquiries

When you authorize a company to investigate your credit for the purposes of obtaining a loan, they legally require a credit check, also known as a “hard hit”. If too many hard hits happen in a short amount of time they can directly impact your credit score. Getting your FREE Credit Score now will NOT count as an inquiry on your score. 

Overall Payment History

Scoring systems tend to consider things such as the number of late payments, how much was paid, how long it took to return to good standing, and if you have defaulted. This is why it is extremely important to pay your bills on time and make your instalment payments each month. 

Total Debt Service Ratio

Scoring Systems will look at your total debt service ratio (TDSR) which is your total outstanding debt and obligations compared to your income and ability to take on more obligations. 

Total Available Credit

Scoring systems will also consider your total available credit today, even the portions which you are not currently using or lending against, but could at any time.

Credit Utilization

This is a long-term historical summary and analysis of your total credit behaviour, which dates back to your first credit usage. This means that your score will be more accurate over time. Scoring systems will factor in many credit lines but the most common ones are Auto Loans, Credit Cards, Cell Phone Bills, Rent, Utilities.  


Any late, missed, or outright defaulted payments will affect your credit score. Some lenders may offer a 30 day grace period before reporting the late payment to the credit bureau. Defaulted loans that have been transferred to collection agencies are damaging.

Mix Of Credit Products

The scoring systems will consider your overall mix of credit sources. This means that having a car loan, mortgage, credit card, or line of credit in good standing will have a positive impact on your overall score.

Automotive    Finance    Car Loans



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