To Our Customers

Your credit rating is an assessment of your ability to handle the financial burden of credit at a particular time.

It is important to remember that your credit rating is dynamic. This means that it will change as your financial circumstances change.

While most financial institutions offer similar products and collect similar information during the approval process, credit granting policies will vary by product and from one lender to the next.

Your overall credit rating is an important factor in determining the type and amount of credit that you may be eligible to receive at any given time. That is why it's so important to establish and maintain the highest rating possible.

With a good credit rating, most applications or requests can be processed over the phone or the Internet, or at any TD Canada Trust branch. More complex applications may be referred to underwriters in one of our credit centres, and take a little longer to process.

The credit granting process can sometimes uncover aspects of your financial situation that you weren't aware of.

Sometimes an application is declined due to a combination of marginally weak factors, not just one major factor. In cases like this, we can make suggestions that will improve your eligibility at a later time.

If you have a concern regarding the manner in which your application for credit was handled, please speak with the representative you have been working with. If your concern still remains, please refer to our "If you have a problem or concern" brochure, available at any branch, or online at www.tdcanadatrust.com

Recognizing that everyone's financial situation is unique, here are some common reasons why applications are often declined:

History of missed or neglected payments

This will likely lead to a lower rating on your credit bureau and could be of particular impact if previous creditors were forced to write off a loss.

Inadequate proof of income

A T4 slip or a pay stub is generally required as minimum proof of income. Depending on the type of income you earn (for example, if you are self-employed or a contracted employee) and the type of loan you require, more information may be requested.

Lack of employment or income stability

Based on your employment history, it must appear reasonable that your income will continue into the future.

Insufficient income

Your total income must support your current liabilities and living expenses plus the additional credit you are applying for.If your income doesn't meet the requirement, you may be able to have your application co-signed by a relative or friend who does meet the criteria and who will agree to be liable for the debt if you fail to make the payments.

Lack of collateral

Depending on the type and size of the credit requested, you may be required to provide collateral of sufficient value to support the debt. For example, a personal mortgage or Home Equity Secured Line of Credit requires the security of a residential property.

You create your own credit rating through the way you manage your money. Below is a list of steps you can take that will help you maintain a good history and access to credit in the future.

Pay all bills on time.

Failing to make your payments on time or missing them entirely can have a major impact on your ability to obtain credit. Setting up pre-authorized payments is a great way to ensure payments are made on a regular basis.

Pay minimum balances when you can't pay the entire amount.

Making minimum payments, when the option is available, will help to maintain a strong credit rating.

If you have missed payments, get current and stay current.

What matters most is your long-term pattern of behaviour. Paying your bills on time, over the long term, will result in a better credit rating.

Avoid applying for credit too often.

Frequent requests for credit may be interpreted as a sign that you have poor money management skills.

Establish a credit history.

Responsible use of credit cards and loans will produce a better credit rating than no history at all. If you are just starting to establish your credit history, be cautious about opening too many new accounts. It's best to build your credit history gradually.

Keep your total debt load in check.

Several small balances can quickly add up to an unmanageable situation. For example, avoid revolving debt on several credit cards at once.

Avoid using credit to pay off credit.

Consolidating balances from several credit cards into a lower-rate loan may be a smart move to reduce your interest charges and lower your payments so that you can keep them current, as long as you don't continue to increase your debt load. But simply making payments on one credit card with funds drawn, for example, from another credit card does not necessarily improve your overall rating because it can be seen as an attempt to avoid paying off your debt. It's much better to focus on paying off the credit you have.

Ask for help.

If you find yourself getting in over your head, talk to your branch or your other creditors. Most creditors will help you to find a short-term solution to a problem if you contact them in advance. In addition, there are also qualified credit counselling services available to help you better manage debt.

Credit approval is based upon your current financial circumstances. As your bank of choice, we can show you ways to improve your eligibility over time, and we'll help create a plan to assist you in meeting your financial goals.