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A credit score is basically a numerical value given to a person’s credit files which is a measure on how their financial transactions have been with the concerned banks. These are useful not only for banks to gauge their clients ability to stick to their loans but is also useful for landlords, mobile companies etc which depend on the customers ability to pay back the amount they have spent. These are rules for credit reports in different parts of the world and they usually use them when giving out loans to people. Many banks judge the creditworthiness of clients based on their credit score.

The reason a credit report is so essential is because it helps you keep track of your financial stability and growth. Also if there are any mistakes in the credit report getting it checked regularly will help keep it on track and avoid any drop in your credit scores. The things that improve your credit score are if you make your payments on time as late payments decrease credit scores. A good credit score is around 650 above and it is tougher to get loans or credit if your credit score is below 600. The report is your credit history over the last seven years. This gives the potential lender or creditor a complete history of your payments and debts which makes it easier for them to judge if they are going to benefit or not.

The credit report in Canada is similar to the one that is practiced in the United States where the credit scores are in three digit numerals. However in Canada there are additional rating given to customer that actually concise the whole report in the alpha numeric rating given to the customer that ranges from R1 to R9. The rating R1 is the least used and R9 being the least paid back. There are differences between the two. In Canada a customer can get his credit report for free as many times during the year as he/she wants this is however restricted to one free credit report a year for the customer in the United States. You can get your free copy by sending a request for the credit score in writing and the report will be sent via mail. The request will be mentioned in the credit report but it has no bearing on the credit scores given to the customer.