Ontario Mortgage Agent Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The calculation of a credit score includes various factors that collectively reflect an individual's creditworthiness. One of the most significant components is payment history. This aspect accounts for about 35% of a credit score, highlighting the importance of timely payments on existing debts. Consistent and on-time payments demonstrate responsible credit management and positively impact a borrower's credit profile.

Payment history encompasses several elements, such as whether bills are paid on time, the frequency of late payments, and the presence of any accounts in collections. A strong record of timely payments reduces perceived risk to lenders, as it indicates that the individual is likely to meet future financial obligations.

While other factors like amounts owed, length of credit history, and new credit and inquiries also play a role in credit scoring, they do so to a lesser extent compared to payment history. Amounts owed reflects the total debt compared to available credit limits, length of credit history indicates how long credit accounts have been active, and inquiries relate to how often a credit file has been checked for new credit applications. Each of these considerations certainly influences a credit score, but payment history remains the cornerstone of credit scoring assessments.