- Myth: In Canada, your credit rating is affected by your age, income and gender. The higher a person's income, the better that person's credit rating will be. Reality: Your credit rating is based on your record of managing your finances responsibly. Lenders look at how you handle your financial obligations, such as whether you pay your monthly bills on time, carry a balance, or regularly miss payments.
- Myth: Someone who has a lot of assets in their home country will have a better credit rating. Reality: Although assets are part of the equation, lenders in Canada will also focus on your Canadian borrowing history to assess your creditworthiness. That's why it is important to build your Canadian credit profile early on, especially if you have plans for big purchases, such as a house or car, which typically require a loan. Even smaller transactions, such as renting living accommodations or getting a cell phone, often require a credit check.
- Myth: When you get married your credit scores are merged. Reality: Credit scores are based on individuals. Any joint application for a loan will be assessed on both partner's credit profiles. As well, any negative or positive reporting will be reflected on each score and could affect your approval or the terms of your loan.
Majority Of Newcomers To Canada Not Confident In Their Financial Knowledge: RBC Poll
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