Knowing where you are in the credit range is very important. Depending on your score, you will receive loans with lower interest rates and you will be approved more easily.   Credit ratings and what they mean   Generally, lenders are guided by this scoring system to determine in which rank the borrower is located and the interest rate that will be awarded.  

• Excellent (780+): Those with a record of 780 or more will enjoy the lowest interest rates on the market and will be approved with ease and speed.
• Very well (779-720): it is considered almost perfect and the tendency of lenders is usually the same as the one mentioned above: low interest rates and fast approval.
• Good (719-680): People falling into this range are still considered good candidates. They may not receive the lowest interest rate but will have no problem when applying for a new loan.
• Average (679-620): Although still considered a good position, borrowers with this score will receive credits with a slightly higher interest rate. According to a study in 2012, the national average score in Canada was 696.
• Low (619-580): Those within this range are considered high risk for lenders. They have more problems getting loans and if they are approved, they will be paying much more than the ideal in terms of interest.
• Very low (579-500): they are rarely approved and if they are, it will be with the highest interest rate available.
• Terrible (500-): Those with a score of 500 or less will not be approved to get any credit and should seek help to improve their financial situation.

  Factors Affecting Credit Score There are 5 factors to calculate credit score, however, 3 of them are key for lenders:

1. Recent Credit (30%): Indicates the times the credit has been checked and the person has been applying for more credits. This means a risk for those who already have a high debt amount.
2. Payment History (28%): is determined by the frequency of payments that have been made in favor of the creditors and whether they have been on time or late.
3. Use (23%): Shows the amount of outstanding debt the consumer has in terms of what the lender thinks he can generally manage.

  Credit Repair The most important thing is to know that our credit score can go up or down at any time. Paying our debts on time, not taking a balance on the credit card month by month and resorting to lenders in an intelligent way and only when it is really necessary, will keep us in a good position within the credit range and receive the Lower interest rates.