Find out the credit beacon score range in Canada that you should know about.
Are you wondering about the credit beacon score range in Canada? If so then the information below will help you be familiar with them.
It is always good to know where your credit score lies as this information will help you determine if you will be able to get a loan or not. Most lending companies today are still granting loans to people with a small credit score but these loans will always come with high-interest rates. Get to know your credit beacon score range in Canada by reading the information below.
The excellent score ranges from 780 and above. Most individuals with this credit score will enjoy getting loans with the best interest rates possible.
Very Good Scores
The Very good score ranges from 720 to 779, wherein people with this credit score can enjoy interest rates that are good as well.
An average score ranges from 680 to 719. Interest rates may be higher this time, but the rate of approval is still high for them.
A poor score ranges from 580 to 679 and individuals under this category are considered as high risk. Getting a loan approved can be challenging for them.
What is a credit score in Canada
If you are one of the many people who is asking about what is a credit score Canada, then you definitely should read the information below.
It is always important to monitor your credit score for you to know where you stand when it comes to lending companies. Fortunately, you can now check your credit score for free with the use of Borrowell because they have partnered with Equifax Canada. Get to know more about these two companies by reading the information below.
Borrowell is a fintech lender company in Canada which offers fast, friendly, and fair loans to people who need it the most. They have fix interest rates that are affordable.
Equifax gathers credit reports, which include your payment history, your debts, and the length of the credit that you already have. They have grown from a credit consumer company to a leading provider of credit score around the globe.
How are credit scores calculated in Canada?
In Canada, credit scores are calculated to show your creditworthiness which is useful for the lending institutions to identify the level of risk involved in lending you loans such as mortgage or home loans. The credit score ranges from 300 to 850. Higher the score, better are chances of you repaying your loans and hence, lower the risk for the lenders.
The credit score is determined by giving your payment history the 35 % weight. Followed by, the amount you already owe as 30%. The weight of 15% is given to the length of your credit history. The new credit applications that you have made and the type of credit that you have used in the past account for 10 % each.
Explanation of credit score ranges in Canada
Knowing the explanation of credit score ranges in Canada is essential for you to understand them fully well.
Getting your loan or credit card approved will depend highly on your credit score. Not everyone is familiar with the ranges of credit score in Canada, which is why familiarizing yourself with them is important. Below are the credit score ranges that you need to know.
Poor credit score ranges from 300 to 559. According to a study, almost 4% of the population in Canada has this score. This can cause difficulties when applying for loans and credit cards.
Good credit score ranges from 660 to 724. 15% of the population has this score. This credit score can help you to obtain a loan or a credit card but with added requirements.
An excellent score ranges from 750 and above. 57% of the population has this score. They can quickly obtain every loan or credit card that they need without providing requirements.