CREDIT SCORE BASICS – WHAT YOU NEED TO KNOW
A credit score is more than a number. It represents your credit performance.
If you want to know what your score is, you can get that information from any one of these credit score services-Equifax, Transunion, Borrowell, and Credit Karma
Borrowell and Credit Karma offer a free trial so you can, at least, get some information.
THE CREDIT SCORE RANGE AND WHAT IT MEANS.
The credit score ranges from 300 to 850. Here’s how that range breaks down.
Less than 350
This means you don’t have a credit history.
LESS THAN 600
This is not just a bad credit rating, it is considered a very bad credit rating. This means you've had
Foreclosure or repossession
Bankruptcy and high balance on your credit cards.
You will have trouble getting personal loans or a credit card and, if you do, interest rates will be very high. If you are not already bankrupt, the signals may be telling you to consider it.
Less than 650 and above 600
Although you’re still in dark woods, you are in a better position to dig yourself out, especially if you are closer to 650.
If your number is in the 650 range, then you are more in line with the national average, which is a compelling snapshot of the Canadian debt condition.
LESS THAN 700 AND ABOVE 650
This is a “GOOD” credit rating, The banks will see you as a risk, but not to the point of showing you the door. However, you will more than likely face higher interest rates.
Less than 750 and above 700
You have managed your credit consistently without major credit issues. Missing a payment every now and then has not affected your score.
We all wish we could be there. You will get just about anything you want within your financial capabilities.
The national credit score average is 650
Statistics show that the larger chunk of Canadians find themselves generally in the good to excellent range.
Trailing interest is the amount of interest that adds up between when a credit card bill is sent and when payment is received.
It is also called Residual Interest.. It only applies when you carry a balance on your credit card
TIP TO REMEMBER
What does it take to improve your credit score?
Well, first of all, find out what your score is. The first, immediate step one can take is to find errors and get them corrected. Believe it or not, an error in an address or a misspelled name can negatively affect your credit score.
Stop missing any payments and start paying off credit card debt
Pay off the smallest debts quickly while making minimum payments on the larger ones.
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