Good credit score8/4/2023 ![]() ![]() Here are some steps you can take to make sure your credit is in good shape so you can be in good standing for your next big purchase or financial endeavor: 1. There are a few tricks to improving your credit, and it doesn’t take long to see the improvements. If you have a low credit score as a result of an unexpected event or poor money management skills, all is not lost. ![]() Be sure to take advantage of the free credit reporting, as well as the educational resources both companies offer to help you improve your credit score. It’s free to sign up, and you can access your credit report within minutes of becoming a member. Both companies will email your credit score and credit report to you for free every week. However, instead of going directly through the credit bureau, you can open an account with Borrowell (partners with Equifax Canada) or Credit Karma (partnered with TransUnion). The two main credit bureaus in Canada, Equifax and TransUnion, are required to offer a free credit report to anyone who wants one, once per year. Employers have to be careful who has access to other people’s financial information. Helps you get hired: If you happen to be looking for a job in the financial world, they may ask to do a credit check on you.Things like unsecured credit loans and low interest loans will be available to you. Your good credit gives lenders the confidence to loan money to you. Financial perks: If your credit score is really good, lenders will give you the best possible interest rates.If you have good credit, you can beat out those people who have a lower credit score. Landlords that have accommodation in competitive markets will potentially include a soft credit check as part of their process. Able to rent an apartment in a competitive market: If you have a good credit score, you can easily compete to get the home you want to rent.You may get to enjoy additional travel perks, such as free entry to airport lounges around the world. Some also offer perks, like free upgrades or free flights while you’re traveling. Better credit cards with perks: You can benefit from getting the best credit cards available in Canada for the lowest interest rates.Your good credit can have lenders competing for your business, so you have the luxury of shopping around for the best offer. The lower your interest, the more money you save in the long run. Greater chance of getting a lower-interest mortgage: Owning your own home with a low mortgage rate is one of the top benefits to having good credit.Here are some of the benefits you’ll get from having a good credit score: Your good credit shows that you pay your bills and manage your money well enough to pay back loans. If you have good credit, you’re most likely to get the loans you want at low rates. The credit score will help a lender figure out what they can offer you in terms of loans or credit cards, and at what rate. Your score is calculated from the credit report, which includes: Where does my credit score come from?Ī good credit score is based on the three-digit number you receive from TransUnion or Equifax. This will give lenders more confidence in loaning you money. The higher the score, the more you’ve demonstrated responsible credit management. Anything under 600 is deemed to be a poor credit score.Between 650 and 719 is a “good” credit score.A score between 720 and 799 is “very good”. ![]() Here’s a breakdown of each level, so you can see how they are categorized: A credit score of 760 and above is generally known as an excellent credit score.Ĭredit scores are set in ranges. If your credit score is between 725 to 759, it’s likely considered very good. According to Equifax, a good credit score is usually between 660 to 724. Most Canadian’s credit scores fall between 600 and 800. However, you’ll find very few people on the extreme ends of the spectrum. In Canada, credit scores range between 300 and 900. How will a good credit score impact your future? In this article, we will help you understand what a credit score is, what factors affect your rating and provide some tips to help you raise your credit score to your advantage. It may take some discipline and maybe learning a new set of financial skills, but it is achievable for all Canadians. Whether you are someone with bad credit or someone who can maintain a great credit rating, there is always room to improve your score. ![]() Your credit score is a reflection of your actions and unforeseen circumstances. With interest rates rising to combat inflation, a large number of Canadians feel that large purchases, such as houses and new cars, are priced far beyond reasonable expectations. ![]()
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