Credit in Canada ranges from 300 (when you are just getting started) to 900, which is as good as it can get. On your credit score, you will see a history of all credit accounts you have, including balances, limits, and payment history. In addition, your age, social insurance number, marital status, and your spouse's name and age can all be included on your credit file.
Finally, some people may have access to the number of dependents you have claimed as well as the occupation you have and your employment history. Each of the above factors affect your credit score in a different way, making credit score numbers a complex and confusing topic.
What is a Good Credit Score?
While credit scores can range from 300 to 900, the magic number is 650. For the most part, many types of car loans and other lines of credit will be hard to obtain if your score is below this number. On the other hand, those with credit scores below this may need to get bad credit loans when they need to borrow money in an emergency.
When you or a company looks to check your credit score, they go to credit agencies who are responsible for tracking your credit history and coming up with the number that you see.
An important note: should you want to see your credit history, both TransUnion and Equifax are required to give you a free report at least once a year so long as you request to see your file by mail, over the phone, fax, or in person.
How Does a Low Credit Score Hurt Me?
When you have a credit score below average, you are considered to have poor credit.
In this case, Canadians may be denied a good rate on many types of credit, including car loans, home loans, and credit cards. In addition, you could pay more for your rental's down payment or have a deposit on your utility bill setup.
How Can I Improve My Credit Score?
The most important way to improve your credit score is to pay off your loans and always pay your bills on time. In addition, you should check your credit score and fix any errors that they have reported. Lastly, if you have no credit, work to open a small credit card. If you can keep the balance under 30% with monthly payments, this will boost your credit significantly over the course of several months.
If you need money to borrow money with bad credit and have nowhere else to turn, consider a loan from iCASH. 9 out of 10 people are approved for a quick loan even if they have poor credit and have been turned down by traditional lenders.
No matter what your credit score may be, iCASH is here to help you improve your financial situation and get ahead with a quick short-term loan.