Credit Improvement New Brunswick
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Written by Kale Havervold
Best Credit Improvement New Brunswick (Online) July 2021
Note: Loans Canada does not arrange or underwrite mortgages or any other financial service. We are a simple referral website that provides free educational resources to help Canadians make better decisions.
Unless you have a perfect or excellent credit score, there is always room for improvement. Having a higher credit score and/or better credit in New Brunswick can help you not only get more affordable loans, but also make the approval process easier. However, improving your credit is sometimes easier said than done, as there is a lot to know and do that can help improve your chances.
Check out the average credit scores by province in Canada.
Credit Score Ranges in New Brunswick
Before going any further, it is important to know about the range of credit scores people can have in Canada. Credit scores in this country range from 300 to 900, the higher the better. As mentioned, a good or high score will equal better interest rates, more flexible terms, and greater chances of approval.
What Qualifies as a Good or Bad Credit in New Brunswick?
While each lender might have their own unique thoughts, there are some guidelines that should be able to help you figure out where you fall.
Excellent (Anything over 780)
These individuals in New Brunswick will have access to the best rates and shouldn’t have a problem getting approved for a loan.
Very Good (720-729)
This is still quite good and no one within this range should have trouble getting some of the best interest rates possible.
You should have no problem getting a decent loan here, but the best rates will often be unavailable to you.
Many individuals in New Brunswick fall within this range and while it isn’t the best place to be, it also isn’t the worst. You should be able to get some loans, but they might not have the most attractive interest rates.
Getting loans here is possible, but they will likely be accompanied by high interest or strict terms.
Very Poor (500-579)
If you are in this range, you will find it hard to qualify for a loan, but your credit can still be rebuilt with a bit of hard work.
Terrible (Anything under 500)
If you fall into this category, getting new credit (unless it is designed for those with bad credit) will be tough and you should consider getting assistance with your credit.
While your credit score and credit health as a whole isn’t the end all be all when it comes to getting a loan, it is one of the largest factors, so you should do all you can to help increase your credit score.
For everything you need to know about the calculation of your credit score, click here.
What Factors Affect Your Credit Score in New Brunswick?
So, what goes into determining if you have a credit score of 450 or a credit score of 800? Well, in Canada, there are five main that help credit bureaus calculate what your credit score is. They are:
Payment History (35%)
This is the largest factor that goes into deciding your credit score, and it has to do with how frequently you make payments and whether they are late or on time. Making payments on time, consistently, is incredibly important.
Read this to see more ways that your payment history affects your credit score.
This is all about the bureaus looking at how much outstanding debt a customer has vs. how much available credit they currently have. If you generally use up almost all of your credit and carry a massive balance, your score may suffer.
Credit Length (15%)
The longer you’ve been using credit products for, the better it will be for your score. If you have multiple credit accounts and are looking to close one, refrain from closing the oldest.
New Inquiries (10%)
The more often and frequently that you apply for new credit in New Brunswick, the more hits your credit score will take. These hits are usually small and temporary, but if you apply for many accounts all in a short period of time, it could be harmful.
The more diverse your credit, the more reliable you will seem to the bureaus. If you have had car loans, personal loans, student loans etc., then you will be seen as more responsible and able to handle repaying debt.
Helpful Tips to Improve Your Credit in New Brunswick
If you are struggling with having bad or average credit, don’t worry, as you’re certainly not alone. While it may seem like a lost cause to try and improve your credit to an acceptable level, that isn’t the case. There are many different things that you can do to improve your credit.
Make Your Payments on Time
If you currently have debt and are making payments, you need to be sure you make these on time. Not only that, but you should be paying more than the minimum as interest can be a killer if you keep a loan unpaid for a long time.
Keep Credit Utilization Under 35%
Using your credit responsibly in New Brunswick is paramount when it comes to raising your score. This means you should use it sparingly and do your best not to use all of your available credit each month. In fact, experts say you should keep utilization under 35%.
Pay Off Any Overdue/Outstanding Debt You Have
If you have overdue debt that is eating you alive, it is not only hurting your bank account, but also your credit. You need to get aggressive with paying off any overdue debt, as improving your credit is hard if you have missed several months of payments.
Looking for some debt management tips? Try reading this.
Does having too much available credit decrease your credit score?
How is my credit score calculated?
If I cancel my credit card, will my credit score improve?
Credit Improvement Made Easy
Improving your credit is always the right call, but it is easier said than done for some people in New Brunswick. If you are serious about improving your credit in New Brunswick, be sure to reach out to Loans Canada, we can help make it happen.