Do you know your credit score?
A credit score is a three-digit number that indicates how you manage your finances. It considers your credit history and helps lenders determine if you’re a reliable borrower.
Your score shows how well you manage your credit. In this way, the score increases in points if you manage your credit responsibly by never missing a payment. However, you may also lose points for missing payments or if you have trouble paying back your debts.
In Canada, any score above 670 is considered a good credit score.
That said, several factors go into determining your credit score.
Such elements include payment history, which tells lenders whether or not you pay your debts on time or if you have payments in collections, and credit utilization, which is the amount of credit you use in relation to how much you have available.
For example, if you have a credit card limit of $5,000 and use $4,500, you have a high credit utilization score. Using less than 30% of your available credit helps to increase your credit score.
Your credit score also considers the length of your credit history, how long you’ve been using credit responsibly, the diversity of credit, and how many credit checks you’ve been subjected to.
The credit score range in Canada is 300 to 900. It is categorized from Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Excellent (800+).
People with an excellent credit score of 800+ pay off their credit balances in full and on time, don’t have late payments, and keep their utilization scores low.
The benefits of good credit include getting more access to credit products with more favourable terms.
You can start working toward good credit and building the financial future you want today by developing and maintaining good financial habits like paying your debts on time, and keeping your expenses within your income range.
Are you still working to build your credit score but need access to a quick short-term payday loan? iCASH offers bad credit score loans.
Get a loan with a poor credit score today. Visit icash.ca today to get started.