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.
Hi Limor – I have heard that if you check your credit score too often it is actually bad for your credit score, is that too true with the tool you suggested?
Great question! With both Equifax or TransUnion when you pull your own credit it is considered a soft pull and doesn’t impact your credit score, regardless of how many times you pull it. That being said, your credit score doesn’t change daily, so no need to check too regularly.
Hey! As the resident mortgage agent on Limor’s power team I can confirm that her response is correct. There is a detrimental effect on your credit if creditors pull your credit too often. A general rule is to keep it below 6 “hard hits” or creditor pulls below 6 per year.
P.S. as a general rule I check my credit quarterly and advise my clients to do the same.
great tips- thanks!