There are 5 main types of credit facilities reported to the credit bureau
- credit cards (banking and retail store cards)
- line of credits which includes account overdraft
- mortgage (if applicable)
- loans (car loan, consolidation loan)
- cell phones (Telcom added in 2018)
- Firstly, each item reported on your bureau is considered a credit facility. A credit facility is a fancy way of saying credit account.
- Secondly, these differ from Derogatory Information, which is only reported when a debt is not paid and/or mismanaged.
- Finally, these 5 items rated give you a credit score that is applied to your mortgage application. Once your credit score is analyzed it will depend on what type of mortgage you are approved for. This is called your mortgage credit score.
If you have a low score you can always build it back up, but how do you build your credit score?
