What is a good credit score? It’s a question as many as 100,000 people ask Google each month. Yes…each month. That means that in North America alone, over 1.2 million consumers are putting their hands up and saying they have no idea what is a good credit score or how to achieve one.
In this guide, we’re not only going to show you what is a good credit score, but we’re going to go over the different scoring levels.
Also, if you haven’t checked your credit before and only recently discovered you’ve got a couple of dings against your credit, we’ll explain how to work past that.
What is a good credit score? 650 or up.
In Canada, credit scores range from 300 up to 900. Most Canadian households (we’re talking over 70%) carry debts of some kind and as such, their credit score is at 650 or less. A good credit score is exactly what it sounds like, but not quite perfection.
On the bright side of things, with a good credit score, you can still expect to get very good loans at worthwhile interest rates, so you’re definitely not in a bad position.
What is not a (very) good credit score?
If you find yourself with a credit score somewhere in the range of 649 down to 575, your rating is considered to be fair. What this means to you: it WILL be harder for you to get access to loans and you won’t be able to access prime rates, but at least you’re not locked out of options.
If you find yourself below the 575 mark you are considered to have bad credit. There are still options out there for you as far as financial help goes, however, you definitely want to look at a concrete plans that will help you reach what is a good credit score.
What is a good credit score affected by?
Now that is the question everyone should really be asking.
Just some of the factors that can negatively impact a good credit score and bring it down a few notches include:
- Missing payments or sending them in late
- Too many sources of credit
- Using too much of your available credit balance
- Applying for too many credit sources in a short period of time
By doing the exact opposite of those four points, not only will you maintain a nice, healthy credit rating, but by eliminating as much debt as possible, you’ll start working your way to the golden pinnacle that is the 900 credit score. Even if you have a bad credit score today, doesn’t mean you can’t work your way back up.
While aiming for the best possible score and enjoying a life of sound financial stability is always a great idea, there might be times where you need a bit of extra money and if your credit score falls below the “good” marker, LoanAway can help.
We understand that credit ratings that fall below the “good” classification aren’t necessarily the result of irresponsibility. That’s why we’re inviting you to call us for a free consultation: (866) 689-0091 (this is a toll-free call) or if you prefer, contact us online.
