Rebuilding Credit in BC, Canada: What is a Credit Score?

If you’ve ever applied for a personal loan, needed a line of credit or bought a car, your credit score would have come into question. Lenders - such as banks and car dealerships - study this three-digit number to assess your spending behaviours; and they also use it to determine any potential risk you may offer.

Understanding what your credit score means, therefore, is crucial.

An Overview of Credit Score Ranges in BC

Ranging from 300 to 900 in BC, Canada, credit scores are calculated using data from your personal report - such as your payment patterns, total debts owed, the length of your credit history, and more.

A higher score means you have a demonstrated past of responsible use, which increases your chances of receiving a loan at a lower interest rate. A poor score, on the other hand, can signal to lenders that you are a risk and unlikely to pay your bills on time. This can make it more challenging to get approved for financing on important matters – if at all.

Understanding Credit Score Ranges in BC

The following is a general overview of credit score ranges in BC and what each rating means:

• 300-579: Poor
• 580-669: Fair
• 670-739: Good
• 740-799: Very good
• 800+: Excellent

Why Do Credit Scores Matter in BC, Canada?

Your score is a snapshot of your financial health, which creditors look at to determine if they will lend you money and at what interest rate.

If you have no payment history (or have a low score), it can be harder to get approved for a credit card, auto financing, or a mortgage. Some employers and landlords also assess scores as part of their background check processes, which could affect your ability to rent an apartment or be hired for a job.

How to Boost Your Credit Score in BC, Canada?

A bad credit score isn’t a life sentence, however – and, there are ways to boost your rating and lessen your credit risk with lenders.

The single most important way to raise your score is by making regular, on-time, and in-full payments to start establishing a positive history.

Having a diverse credit mix, like an auto loan and a credit card, can also work in your favour. It will show lenders that you can manage various loan products at once; and this brands you a more responsible candidate.

Contact TransCanada Finance to Improve Your Credit Score With an Auto Loan

If you are looking to rebuild your credit, consider adding a car loan to your mix. By making regular payments on time each month, your score will steadily improve, helping you qualify for better rates in the future.

Getting approved for auto financing is easy - regardless of your situation. Our team at TransCanada Finance works with all types of consumers, whether they have bad credit, no credit, or have undergone bankruptcy. We will help you find the perfect options for your needs.