In my last blog post, I discussed the basics of credit scores, so today we are going to take it one step further and do a break down of each credit score range. The average credit score for most Canadians is around 650.
The range in Canada for scores is between 300-900, with higher numbers being more favorable.
300-559 Very Poor
If your score is in this range, you may not be approved for credit at all, or would be required to pay exorbitant fees and high interest rates.
Similar to the very poor range, if you fall in this category, you will not be the ideal candidates for loans, and you will have very few good options for borrowing.
Finally you will start getting better interest rates, but try to build your score from here. Keep going!
725-759 Very Good
You will get better than average interest rates, and will get easily approved.
If your score falls in this range, you are the ideal candidate for loan approval of any kind. You will get the best rates, saving you lots of money in the long-term.
Do not lose hope even if you are on the lower end of the spectrum, as there are lots of ways that you can improve your credit score range. Some of these ways include paying off debt, saving most of what you are earning, and being careful about your spending. Talk to one of our counsellors today to find out more about how you can improve your rating.
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