What is your credit score?
Your Credit Score is a numerical score calculated by assigning values to all the items in your basic credit report, credit history and financial life. It is used to pre-screen all credit applicants and eliminate those who fall below a certain score.
It is also used to determine what sorts and amounts of credit you qualify for. It is used as the primary lending tool by most lenders.
Here's a chart that explains your score:
Lenders (and employers or landlords) will first look at your Credit Score to determine if it is worth processing your application.
- 720 - 850 - Excellent - The best financing terms and represents the best score range
- 700 - 719 - Very Good - qualifies to receive favourable financing
- 675 - 699 - Average - will qualify for most loans
- 620 - 674 - Sub-prime - May qualify but will pay higher interest
- 560 - 619 - Risky - Will have trouble getting a loan
- 500 - 559 - Very Risky - You need to work on improving your rating
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