Your credit rating is a measure of your credit-worthiness, or in other words, your record of borrowing and repayment. Without a credit rating, few institutions will lend you money.
Governed by provincial laws, the credit bureau – the clearing-house of information on consumers’ use of credit – provides a credit history, which is a list of facts about how you handle debt. This information is gathered from financial institutions, retailers and other lenders. Most of your credit information remains on your file for seven years. In addition to negative information, positive information is also reported on your file. Make sure that the information each of the two credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.