Your credit rating is a ranking that indicates your financial health at a specific point in time. It compares the risk you pose for lenders to that of other Canadians.
Your overall credit rating is an important factor in determining the type and amount of credit you may be eligible to receive at any given time. That's why it's so important to establish and maintain the highest rating possible.
Credit agencies collect credit information from the companies that provide the credit to you. A strong credit record enhances your ability to get credit in the future. Records containing negative reports, such as overdue payments or non-payments, could make it more difficult for you to borrow or get credit in the future.