Equifax Canada has developed a new credit score to assist lenders and the one in five applications from Canadians who currently struggle to obtain credit, auto financing or a mortgage.
Score Complete” was developed for credit grantors that need to determine whether or not their customers are going to meet their financial obligations. The new score will also make it easier for new Canadians, students and others who are new to credit to establish a credit history.
Using the best data sources and statistical modeling techniques, Score Complete gives a very accurate assessment of a consumer’s likelihood of defaulting on payments. The result is calibrated to other traditional industry scores, from 300 to 900, and comes with reason codes and a legend to help interpret an individual’s rating.
Each year, Canada accepts approximately 250,000 new permanent residents. There are also approximately 2.2 million Canadians between the ages of 15 and 19, a prime age for starting to build their credit history.
Source: Seeking Alpha