If you're new to Canada, understanding what makes a credit score "good" is essential for your financial well-being. In this blog, we'll discuss credit scores in Canada and how a good credit score can pave the way for a secure future.
May 22, 2024
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If you're new to Canada, understanding what makes a credit score "good" is essential for your financial well-being. In this blog, we'll discuss credit scores in Canada and how a good credit score can pave the way for a secure future.
What is a good credit score in Canada?
In Canada, credit scores typically range from 300 to 900, with higher scores indicating a lower credit risk. While the specific criteria used to calculate credit scores may vary among credit bureaus, a general guideline is as follows:
Having a good credit score (660 or above) is essential for accessing favourable interest rates and terms on loans, credit cards and other financial products. It demonstrates to lenders that you're a responsible borrower who manages credit responsibly and pays bills on time.
Why does your credit score matter?
Your credit score is a reflection of your financial health and responsibility. Lenders, landlords and even potential employers may use your credit score to assess your reliability. A good credit score opens doors to better financial opportunities, such as lower interest rates on loans and credit cards, higher credit limits and approval for rental agreements and utility services.
How can you build and maintain a good credit score?
Building and maintaining a good credit score requires responsible financial habits, such as:
By practicing these habits consistently, you can establish a positive credit history and improve your credit score over time.
As you settle into your new life in Canada, understanding and managing your credit score helps to establish financial stability. Windmill Microlending is here to support newcomers like you by providing affordable low-interest career loans. Whether you're looking to get back to your career, obtain professional credentials or further your education, our career loans of up to $15000 can help you achieve your career goals. Check your eligibility today!
