If you’re looking to borrow money, it’s important to understand your credit score. It comes into play when you apply for credit cards, personal loans and other types of credit products.
Lenders look at your credit score when reviewing your application. Factors that can impact your score include how much debt you’re carrying and your credit history. Your credit score gives them a good idea of whether you’ll make your payments on time.
In Canada, credit scores range between 300 to 900. If you have a higher score, you’re considered lower risk as you’ve generally handled credit well in the past. And this may come with benefits, like potentially being offered a lower interest rate, making the cost of borrowing less.
Your score changes over time. It goes up or down based on the amount of debt you owe and whether you make your repayments on time. Wondering how you can increase your score? There are different things you can do to help improve it.
Let’s dive into some frequently asked questions about credit scores.