What is a credit score and how is it calculated?

A credit score is a numerical representation of an individual's creditworthiness and reflects their credit history. Equifax calculates credit scores in Canada using a combination of factors. Payment history, which shows whether you have made payments on time, accounts for the largest influence on the score. The amount owed, types of credit used, duration of credit history, and new credit inquiries also impact the score. Each of these factors has a specific weight in the calculation process. A credit score ranges from 300 to 900, with a higher score indicating better creditworthiness. Equifax uses sophisticated algorithms to analyze credit information from various sources, including lenders and financial institutions, to determine an individual's credit score accurately.