Credit score range… where do you stand?
Your credit score is a numeric expression of your behaviour with money from the eyes of money-lenders (for example a bank) at a given point in time. It is important to have good credit, even if you don’t think you need it.
In Canada, there are several different reporting agencies, the largest one, being Equifax. You can check your credit score by going to www.equifax.ca. You should check your credit regularly to monitor it. Occasionally you might find mistakes in credit reports, so this is another reason you should check that it is accurate. Having wrong information or errors on your credit can have a negative impact on the score. If there are mistakes, you can reach out to have them corrected.
Your credit score can range from a score of 300 – 900 and of course the higher the better. Here is the breakdown:
- 300 – 559 –> Poor
- 560 – 659 –> Fair
- 660 – 724 –> Good
- 725 – 759 –> Very Good
- 760+ –> Excellent
If your credit score is poor or fair, you’ll have a harder time accessing money (like for a mortgage or new credit cards for example) and if you are offered funds, you’ll likely have to pay a higher interest rate. The stronger your credit, the better the interest rates you’ll likely qualify for when you do decide to borrow money at some point. This means the cost of borrowing those funds will decrease.
Your credit score is a snap-shot at any given point in time. If your credit isn’t very strong, there are steps you can take to improve your credit. It does take time to establish new behaviours and you won’t be able to impact your score significantly overnight. However, it is worth starting to take action to improve your credit score.
Watch today’s episode of LimorTV to understand more about your credit score.