Understand everything you need to know about credit in Canada. From calculating credit scores to understanding how to build yours, we’re committed to helping you grow.
What is a credit score?
Your credit score reflects your credit worthiness. It’s a number that shows how you, as an individual, are with borrowing funds.
The higher you score, the better.
Why is your credit score important?
Your credit score is considered whenever you sign up for a new credit product. This includes car loans, mortgages, credit cards, and other credit products.
The better your score, the easier it is for you to get approved for a new credit product.
Here’s an article on the importance of your credit score.
How do you build your credit score?
There’s so much that goes into determining your credit score. Above everything else, your payments are what truly matters. The ability to repay your debts on time helps you build your credit score.
The better you are at managing your credit, the higher your credit score goes.
Additionally, credit utilization, the length of your credit history, the types of accounts you hold, and credit inquiries are factors that are considered.
Want to know what all of these mean? Here’s an article on what makes up your credit score.
Keep your balance low to raise your credit score.
What is a good credit score?
Your credit score can vary from 300 to 900.
A good credit score is generally above 700, and an excellent one is above 800. Generally, a poor credit score is one below 650.
Here’s how you can read more about what’s a credit score and why should you care?
What if this is my first credit product in Canada?
If you’ve never had a credit product in Canada, Neo is here for you! The Neo Secured Credit card can help you establish credit. It’s the perfect product for you to build a credit history in Canada if you’re starting out. There’s no hard credit check involved in signing up for this product. Here’s how to sign up for a Neo Secured Credit card.