8/19/2023 0 Comments Credit score ranges for equifax![]() In fact, how much available credit you’re using (credit utilization) makes up 30% of your credit score. While you may have a credit card with a $10,000 limit, that doesn’t mean you should be using anywhere near the maximum credit. Be sure to never skip a payment, even if a bill is in dispute, and always reach out to your lender right away if you’re concerned about not being able to make a payment. It’s very important to always make your payments on time, even if it’s only the minimum. Payment history refers to how timely you are when it comes to making your payments on past and current debt. Your payment history makes up 35% of your credit score, making it the biggest factor in determining your overall number. These are four of the main factors that lenders will look at to calculate your credit score in Canada: This data may change regularly and as a result, your credit score will adjust accordingly. There is a variety of data that’s collected to determine what your overall credit score will be as a borrower. If your score is low currently, it doesn’t mean it’ll be low forever. Remember that credit scores are not etched in stone, they are ever-changing. – Anything under 600 is considered a poor credit score – A score between 720 – 799 is considered very good – A score of 800 or above is considered excellent Credit scores are set up in a range and the breakdown of each level is as follows: You’ll find very few people on the extreme ends of the spectrum as most Canadian’s credit scores tend to fall between 600 – 800. In Canada, credit scores range between 300 – 900. So, once you’re able to check your credit score, you’ll need to determine where you fall on the scale. ![]() ![]() The higher your credit score is, the greater your chance of being approved for a mortgage or other loans/credit products. Those three digits will help determine the interest rate you’ll receive when you apply for a mortgage/loan so understanding what your score is and if it needs improvement, is important information to know. ![]() Understanding what your credit score is and how it’s calculated, will help you better get a handle on how to improve it and use it to access better rates. And takes into account any instance of being sent to collections or filing for bankruptcy ![]() Your credit score takes these six factors into account:Ħ. This score ranges from 300 – 900 and is an indication of how creditworthy you are, or basically, how likely it is that you’ll be able to pay banks and other financial institutions back. To put it simply, your credit score is a three-digit number that’s calculated by the credit bureaus in Canada (Equifax® and TransUnion®). But what is considered a good credit score in Canada and how do you know where you fall on the scale? While the answer will generally vary based on the lender, understanding what a credit score is, what factors influence your score and what steps you can take to improve it, will help you determine how you compare to the average Canadian and what that means for your reputation as a borrower. Having a good credit score can open up the doors to better interest rates and borrowing options from lenders. Find the best mortgage option for you in minutes Get My Rate ![]()
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