Your credit score plays a huge role in determining the kind of mortgage you can qualify for—and at what interest rate.

Many Canadians are never taught how credit really works, and a lack of basic financial knowledge can lead to costly consequences. In fact, the difference between excellent credit and poor credit could be the difference between working with a top-tier lender at a competitive rate and having to turn to an alternative lender with significantly higher monthly payments.

What Is a credit score?

Your credit score, often referred to as your FICO score, is a three-digit number that lenders use to assess how likely you are to repay debt on time. Scores range from 300 to 900, with anything in the mid-to-high 600s generally considered good. A score above 720 is excellent, while a score below 620 can make it difficult to qualify for a mortgage from a traditional "A" lender.

What affects your credit score?

Understanding how your score is calculated can help you avoid common pitfalls.........

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