According to Borrowell the average Canadian credit score in 2022 is 672.1 Low credit scores can impact lives on so many levels making it harder to keep up with society. Thankfully there is fast and accurate ways to view your credit score online immediately. To view your credit history and what lenders can see on your profile try a simple online search now.
Why Credit Scores Matter In 2022
Credit scores are basically designed for lenders of credit to predict if a customer will pay their debt back. The higher the number the better chance you have of borrowing money from a potential lender. In the past to view your credit score you had to often pay $30 to $50 and sometimes even more for a reporting agency to release your information. It is now more affordable than ever before and sometimes even free depending which state or territory you’re in.
What Are The Credit Score Amounts?
In general practice for credit scores in Canada a breakdown is simply viewed like this:
Excellent = 760 – 900
Very Good = 725 – 759
Good = 600 – 724
Fair = 560 – 659
Poor = 300 – 559
How Is A Credit Score Counted?
Well traditionally its quite impossible to determine how much an exact action will have an affect on your score. Every year the numbers of Canadian citizens are crunched and the averages are giving to credit scores. Credit bureaus are not lawfully required to share their formulas for creating the credit scores. However the factors that do affect your score may include the following:
- How much existing credit you have
- How long you’ve carried this credit for
- Payments made on time or often missed or late
- Credit card balances
- Number of denied credit applications
- Type of credit you’re using whether personal loan, mortgage, auto loans, credit cards etc
- Prior debts sent to collection agency
- Records of insolvency or bankruptcy.
How Often Do Credit Scores Get Updated?
In general a credit score is updated every 30 days but in some cases it may take up to 45 days for new history to be updated in your number.
How To Boost Credit Scores?
If you’re experiencing a lower credit score than you’re happy with and want to work on rising it there is many ways to do this. Some ways are more effective than others so it is best to focus on these ones. Limiting your number of credit applications or credit checks is also important as each credit check is recoding in your history. If you’re consistently checking your score it may signal desperation in getting credit.
Use Different Types Of Credit – If you use just one type of credit like a credit card this may lower your overall score. Its better to have a mixed portfolio of credits including a credit card, auto loan, personal loan or even mortgage.
Make Payments On Time – Using services like direct debit can help to always make sure your bills are paid on time. Taking out a small credit card and beginning to pay back the balance each month is a good practice for boosting your score.
Who Creates The Credit Scores In Canada?
Well in Canada there are two main bureaus with the task of maintaining credit report status for each citizen. These two companies are Equifax and TransUnion which are private companies that store and collect the way Canadian citizens use credit. They have access to banking institutions and independent lenders so they have a broad range of active data on each citizen.
Whats Included In A Credit Report?
In a traditional credit report provided to a lender when you apply for a loan of some type there are multiple layers of the report. The beginning is simply the credit score which is the main factor in your approval status. Other information in this report include name, date of birth, address, passport number, drivers license, employment and previous employment titles.
Why Your Credit History Is Vital
There is no easy way to say this but in the modern economy credit scores matter as so many processes are now done automatically by computers. Financial institutions use automated programs to determine whether or not you’re eligible for financing. If you have no previous credit history it can be difficult to be approved for bigger loans like a home loan. This is why taking out a small credit card can actually help boost your score If you have a good credit history you not only get approval much easier but may be rewarded to extra benefits like cheaper interest rates.
Get Your Instant Credit Report Now
If you want to view your most up to date credit score in the last 30 days it is a very simple process. There are multiple agencies offering very low rates to accessing the scores and sometimes even free. To view your current credit score try a simple online search.