Your credit score is a hallmark of your financial life as you will be able to avail any kind of financial assistance like loans or not. It decides your bad credit score or good credit as in October 2015 2.85% of Canadians had a credit score below 520. And 15% of people in Canada had a credit score of 520-680

Now your bad credit can deprive you of financial facilities. In case if there is any possibility to get the approval of what you are looking for. Then there are higher interest rates as well as fees to pay later during the repayment period.

With your good credit score, you will have a good financial life as your bad credit score is the result of past mistakes that you did. Not making payments on time, after applying for something valuable, lowers your credit rating so as to tarnish your image.

So it was very important to know why you have a bad credit score which is very basic which is related to your payment habits. Apart from this, there are many things that matter like getting too much credit and defaulting in accounts can also lead to low credit.

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Now, let us discuss the range of credit scores ranging from poor to excellent, and then we will focus on how to build it.

Canadian credit score categories to take a look at are:

BAD SCORE FROM 300 TO 560: If your credit score falls between these ranges then it is considered poor which keeps creating hurdles. They can be responsible for not getting any loan approved or paying too much.

REASONABLE SCORE FROM 560 TO 660: With your proper credit score, you may not have all the facilities like a good credit holder, even you may be required to pay interest rates but not as much as A poor credit holder would have to.

A GOOD SCORE FROM 660 TO 725: At this range, you can easily get any kind of financial assistance by paying low interest rates. In fact, your acceptance cannot be denied whenever your score reaches 660 to 725.

A VERY GOOD SCORE FROM 725 TO 760: In case of a very good credit score, borrowers can increase the loan amount at the time of applying and get faster approval with a lower Annual Percentage Rate (APR) to pay later can do.

EXCELLENT SCORE FROM 760 TO 900: Congratulations! You are one of the best credit holders who have an excellent score to avail the benefits of low-interest rates on anything. Apart from this, you can apply for any type of loan.

How can I build my credit score effectively?

When you know your credit score is not good. Then it is imperative to work on your credit score at the earliest so that you can make the most of it. Sometimes it may happen that you may need a loan or something else, like getting a job or renting a house.

If you want positive results then your credit score should be good. Having bad credit can be a burden on your pocket as you have to pay a lot for everything, whatever you are going to apply for. It’s time to build your credit score with some helpful tips.

Some ways to improve your credit score a bit:

TARGET YOUR PENDING BILLS: If you can pay your pending bill that means you has now taken a hard step. This step will help you improve your credit score faster, but you need to stick to it till your credit score improves.

KEEP AN EYE ON YOUR CREDIT REPORT: You should keep checking your credit report once a week by getting a free copy which is free. Sometimes, there are errors that need to be reported for you to see some positive changes in your credit score at the same time.

PAY A LITTLE MORE FOR FASTER IMPROVEMENT: Perhaps, this might be a bit difficult for you, but you can see how your credit score is improving soon. In fact, when your credit score reaches a certain degree, it will make you feel impeccable.

KEEP YOUR CREDIT UTILIZATION TO A MINIMUM: Your credit utilization reduces your credit score once you exceed the limit, so you need to take this seriously. You can keep the usage below 30% which is enough to help you improve your score.

DEBT CONSOLIDATION CAN HELP: You have outstanding debts to pay off so what can you do to consolidate them all by applying for a debt consolidation loan. You only have to make one payment to get rid of your past debt. This will increase your credit score rapidly.

When can I see a positive change in my rating?

After doing your work you need to have some patience. The time it takes for your credit score to improve is a maximum of 30 to 90 days. There are agencies like Equifax and Trans-Union that make changes by editing, depending on how fast you paid.


Your good credit score is everything for you which can get you out of all kinds of financial problems fast. A good credit rating can help you avoid high-interest charges whenever you are going to pay off a loan for which you have applied.

Also, if you have a bad credit rating then you have the mentioned tips. You can just follow them all and wait to see the change in your scoring. It is not a big deal for people to revise their ratings but an intention with determination after reading it.

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