What Should Your Credit Score Be?

Most of us depend on credit for many things such as buying a car, house or getting a loan. Your credit report is your credit history wrapped up in three digits. It measures your ability to make payments on time and is designed to help lenders determine your credit worthiness.

Credit scores in Canada can range from 300-900. The higher your score, the healthier your financial record is and lenders will view you as less of a risk to them. The interest rates you receive will be determined by your score. Maintaining a good credit score is essential to your financial well being.

What is a good credit score?

You are considered to have good credit if you have a number of 700 and up on your credit scale. This score will allow you to have fewer problems applying for loans and getting better interest rates.

You are in the okay range if your credit score is between 450 and 650. You may be viewed as a risk but one that is acceptable to most organizations depending where you fall between these 2 numbers. The closer you are to 650, the better.

Anything under 450 is considered bad credit. You will be looked at as a high risk to the lenders. You will have significant trouble acquiring loans. Nowadays, there are plenty of places that will approve you for a loan but the downfall is that your interest rates will be sky high.

There are other factors that contribute to your credit score. The major factors contributing to your score is made up of the amounts that you owe and your payment history. The lesser factors are the type of credit you are using, the percentage that is new debt and the length of your credit history. These are all factors that are considered when determining your credit score.

You have a right to see your credit report. No one can have access to your report unless you allow it. Remember that every time you apply for a loan or credit card, you are allowing the company to check your credit report.

Knowing your actual credit score is a great start. You should understand the key factors that affect your score and learning how to increase and/or maintain your score over time is also important.

For more valuable tips and information please visit www.prudentcreditrepair.ca