Rebuilding Credit in BC, Canada: Understanding Credit Rating Ranges

In Canada, credit scores range between 300 to 900 and are used by lenders to determine a potential borrower’s potential risk. If your score is on the low end, it may be difficult to get approved for financing with great interest rates. However, with a very good or excellent rating, challenges rarely exist.

If you’re looking to rebuild your credit, it’s important to understand what your score means. Read on for an overview of each credit rating range to learn how they may impact your financial future:

Credit Ranges in BC: Excellent (741-900)

Canadians with a credit score in the excellent range have few troubles obtaining loans. These consumers have clean reports with no late payments, boast low credit utilization, and have an established pattern of balances being paid in full - making them attractive candidates to lenders. This will translate into favourable interest rates and access to special perks (such as cash back programs).

Credit Ranges in BC: Very Good (690-740)

Consumers with a very good credit score rarely make late payments and keep their utilization to a minimum. With this rating, these Canadians typically benefit from lower interest rates and qualify for some benefits, like credit card rewards and cash back on eligible purchases. They also experience few challenges with gaining approval for a loan.

Credit Ranges in BC: Good (660-689)

Canadians with a good credit rating may experience some roadblocks. With a history of multiple late payments with more than one lender or a past default, these consumers will be offered higher interest rates to reflect their potential risk. On the other hand, Canadians with this rating may still qualify for unsecured loans - allowing for flexible financing.

Credit Ranges in BC: Fair (575-659)

Consumers with a fair score are often only approved for secured forms of credit that provide lenders with less risk since there is collateral – like a vehicle or deposit – involved. These loans also have higher interest rates, which increases costs over time and can potentially further damage ratings.

Credit Ranges in BC: Poor (300-574)

Canadians with a poor credit rating have a difficult time getting approved loans with traditional lenders - due to multiple loan defaults, high credit utilization ratios, or bankruptcies. For these consumers, subprime lenders are usually the only option for receiving financial assistance. However, by making regular, on-time payments in full, these individuals can experience a strong boost in overall scores and rebuild their ratings.

Contact TransCanada Finance to Learn More About Subprime Auto Loans

At TransCanada Finance, we understand that consumers are more than the three digits of their credit ratings. Whether you have bad credit or no credit, we’ll connect you with the best vehicles and auto financing deals - helping you improve your score.