Your credit score is a single number between 300 and 900, that is calculated based on your overall use of credit and your credit history. It is used by creditors and others to quickly determine how responsible you are with credit. The higher the numerical score, the better. Your credit score itself is just a number and does not provide any specific details about your credit history or current debts, which would be found on your credit report.

The ratings will range between an R1 to R9 for revolving credit (accounts such as credit cards, where payments differ each month based on balance), and an I1 to I9 for instalment credit (loans with fixed monthly payments, such as vehicle loans). The ideal rating is an R1 or I1 as it indicates that payments are being made on time to that account.There are two major credit bureaus in Canada which report credit ratings and credit scores. They are Equifax and TransUnion. All of your ratings are based on what your creditors report to each bureau. Therefore, the credit ratings and scores between the two credit bureaus may differ if your creditor only reports to one and not the other. For this reason, it is important to review your credit reports from both credit bureaus regularly as you never know which credit bureau a creditor, employer or landlord will use when doing a background credit check or pulling your credit score. If you would like to improve your credit score or credit rating, check out our Tips for Rebuilding Your Credit.