Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score
📅 Last Updated: September 9, 2022
✏️ Written By Bryan Daly
🕵️ Fact-Checked by Caitlin Wood

In Nova Scotia, credit products are just as common as any financial tool. Car loans, credit cards, and mortgages are some of the most widely used credit products amongst Nova Scotia borrowers. If used responsibly, any of these credit tools can be an excellent way to help you improve your credit. In fact, having good credit is essential if you’d like to continue applying for credit products in the future.

The Canadian Credit Score Range

Understanding how your credit score works is a good first step toward credit improvement in Nova Scotia. As soon as you start using your first Nova Scotia credit product (likely a credit card), you’ll be assigned a credit score from Canada’s credit reporting agencies, Equifax and TransUnion. That score will be three-digits ranging from 300-900.

Want to know the difference between your credit score and credit rating? Find out here.

While every credit card company or lender will work with only one agency, a version of your credit score and credit report will be kept on file with both. Both of which are used by lenders in Nova Scotia when considering you for credit.

Credit Score of 680 – 900

This is a sign of good credit, meaning you will be more creditworthy from your lender’s perspective. With good credit, prime lenders in Nova Scotia like banks and credit unions are more likely to approve your applications. Additionally, because good credit generally means you’re also good at making loan payments on time, you’ll be perceived as less risky and will be rewarded with a lower, more affordable interest rate.

Look here to see what happens when you can’t make your loan payments.

Credit Score of 620 – 680

This is a sign of fair credit, meaning you’ll still look somewhat creditworthy. Your score may have reached this level because of a few missed or late payments and therefore your approval chances may be slight slightly lower. However, you might find it difficult to be approved with prime lenders and may have to turn to alternative or private sources in Nova Scotia. Your interest rate could also be slightly higher because the lender considers you riskier than a borrower with good credit.

Credit Score of 300 – 620

This is a sign of bad credit. Unfortunately, this may mean you are far less creditworthy, as your score could have reached this level because of a long history of late or missed payments. At this point, your only choice may be to apply with a bad credit lender. While approval might be easier, since these sources are established specifically for clients who have trouble getting credit elsewhere, your interest rate will be higher.

Canadian Credit Score Ranges

Factors that Can Improve (or Damage) Your Credit

Generally speaking, there are five main factors that can have both a good and bad effect on your credit. We’ve broken down them down into categories so you can see how large of an effect each component has in the calculation of your credit score.

Payment History (35%)

The strength of our payment history is especially important for credit improvement. Again, we’ll use your credit card as an example. While minimum payments are an option, it’s more beneficial to make full payments and to never miss a due date. If you do, or you make a late or short payment, you’ll be defaulting. Every time you default, you’ll incur a penalty fee and be charged interest on the unpaid amount. Your credit score will also be damaged in the process. A similar, if not worse effect will occur when you default on a large loan, like a mortgage, where foreclosure is possible after a certain number of missed payments

Current Debt Level (30%)

Along the same lines as your payment history, your debt level plays a significant role in how your credit score is tallied. Plain and simple, the more unpaid debt you have, the worse your overall credit will become. The same effect can be seen the closer you get to your credit limit on your revolving products (credit cards and lines of credit). It’s best to use less than 30% of your available credit to avoid further damage to your score.

Read this to learn about some effective debt management products.

Credit Account Age (15%)

The length of your credit history and the age of your credit accounts is also significant. When considering you for new credit, lenders in Nova Scotia like to see a long record of good payments, which proves that you’ll continue this behaviour with the product they’re about to approve you for. For example, a credit card account that you’ve been paying responsibly for a long time is far more valuable than one you opened recently, which wouldn’t really tell them anything about your credit habits.

Diversity of Accounts (10%)

It’s also beneficial to have a good variety of credit products under your belt. While less credit account types won’t necessarily damage your score, having a good mix of loans and revolving products is certainly a good way of building or improving your overall credit health. That is, as long as you’re paying them all on time and in full.

New Credit Inquiries (10%)

Applying for new credit in Nova Scotia can be a good thing when you do it in moderation. However, applying for too much new credit within a short time is not a good idea. This is because every time a lender inspects your credit report, a hard credit inquiry is performed. Soft inquiries, performed by a potential employer, landlord, or yourself, do not affect your credit score. Hard inquiries, on the other hand, reduce your score by a few points and may remain listed in your report for 3-6 years. If your bad credit gets your application denied by one lender, refrain from applying all over town. Future lenders in Nova Scotia will see your damaged score and multiple hard inquiries and assume you’re being rejected because you’re a risky client. Always wait at least a few months between applications.

Canadian Credit ScoreCheck out this infographic for even more information about your credit score.

Things You or a Lender in Nova Scotia May See On Your Credit Report

Your credit report contains all your credit-related activity over a number of years. The time each piece of information remains there depends on its level of significance. For example, while a simple credit card account will stay for 6 years, multiple bankruptcies may stay for 14 years. Since lenders in Nova Scotia can also see your credit score in the version of your report that they would have access to, they use both elements to determine your approval chances and interest rate.

Other elements listed in your report include but aren’t limited to your:

  • Personal information (name, address, SIN, postal code, etc.)
  • Credit rating (a grade each credit account is given according to your usage)
  • Payment and debt histories
  • Bankruptcies, consumer proposals, debt settlements, other delinquencies (if any)
  • Employment history

Better Spending Habits for Better Credit Health

While credit improvement takes patience and lots of effort on your part, it is always possible no matter what your current credit health looks like. If your credit is terrible, it can even take years to reverse your situation. However, it will be well worth the effort when you’re finally able to get approved at a low-interest rate without a hassle. Here are a few credit improvement methods you can start with:

  • Create a budget that works, listing every expense that you frequently deal with
  • Request that any errors in your report be corrected by the credit agencies
  • If an error is caused by identity theft, request “fraud alert” be put on your report
  • Pay for credit monitoring if you feel it’s necessary
  • Take on a second job or increase your income in some other way
  • Consolidate all your other outstanding debts before applying for new credit

Consider These Credit Improvement Products in Nova Scotia

Are the methods above not enough? Are you looking for a credit improvement tool that’s a little bit speedier and more effective? Don’t worry, because there are plenty of different products available all over Nova Scotia which should have the desired effect, many of which are offered right here at Loans Canada. These include, but aren’t limited to:

  • Credit counselling
  • Secured and prepaid credit cards
  • Credit rehabilitation savings programs
  • Debt consolidation programs

Frequently Asked Questions

I can’t qualify for anything. How do I improve my credit score?

Besides paying down your loans, you can improve your credit in other ways. For example, if you can’t qualify for a regular credit card, you can save up to get a secured credit card. They are much easier to qualify for and you can use them for regular expenses to improve your credit so long as you clear the balance every month. Other ways you can improve your credit include credit rehab savings and debt consolidation programs, and credit counseling.

Will checking my credit affect my credit?

Yes, but with some exceptions. Credit checks can affect your score if they are hard hits. These types of checks will appear on your report mainly from loan applications, but possibly from rental and job applications too. Too many will affect your score and will be a red flag to lenders. “Soft hits” do not appear on your report and won’t affect your score. These are from self credit checks or when your lenders want to update your account.

Will my credit score decrease if I have too much available credit?

No. If you have more available credit but the same amount of debt, your credit utilization ratio will decrease. A lower credit utilization ratio usually translates to a higher credit score. However, having too many of the same types of credit accounts open will potentially hurt your credit score.

Loans Canada, Your Go-To Source for Credit Improvement

No matter what your credit situation happens to be, we have a product that can help you work to improve your credit. Get started by checking out your options.

More From Our Experts

Nyble vs. Bree: Which One Is Better?
Nyble vs. Bree: Which One Is Better?

Bree and Nyble make great alternatives to expensive payday loans. If you're short on cash, these services can help cover you.

Credit Building Apps Like Nyble
Credit Building Apps Like Nyble

Looking for credit building apps like Nyble? We've listed and reviewed various products that can help you improve your credit score.

What Can You Do If Your Credit Card Application Is Declined?
What Can You Do If Your Credit Card Application Is Declined?

Have you had your credit card application denied? Find out why and what you should do when you're denied a credit card.

Tim Hortons Credit Card Review 2023
Tim Hortons Credit Card Review 2023

Explore our review of the Tim Credit Card: perfect for Tims enthusiasts, offering rewarding points on everyday purchases, with no annual fee.

CIBC Costco Mastercard Review 2024
CIBC Costco Mastercard Review 2024

The CIBC Costco Mastercard is the official card of the retail giant, but its rewards and perks may not make it the best card to use when shopping in s...

Best Credit Card Combinations In Canada 2024
Best Credit Card Combinations In Canada 2024

Strategically combine cards to optimize benefits. Learn about the best credit card combinations in Canada.

Life After A Consumer Proposal: Fastest Way To Build Credit
Life After A Consumer Proposal: Fastest Way To Build Credit

Wondering what's life like after a consumer proposal? Learn how to rebuild your credit and access credit after a consumer proposal.

Best Rewards Credit Cards 2024
Best Rewards Credit Cards 2024

Looking for the right rewards credit card? Check out our list of the best credit cards in Canada that offer the best points and perks.

Best Travel Credit Cards In Canada 2024
Best Travel Credit Cards In Canada 2024

Discover the best travel credit cards in Canada based on rewards potential, flexibility, insurance, and perks. Compare the top options.

Best Instant Approval Credit Cards In Canada 2024
Best Instant Approval Credit Cards In Canada 2024

Get instant approval on a quality credit card, even with bad credit. Compare the top instant-decision cards with cash back and low fees.

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers
Caitlin Wood Priyanka Correia Lisa Rennie Bryan Daly Cris Ravazzano Margaret Johnson Kale Havervold Liz Enriquez Sean Cooper Veronica Ott Corrina Murdoch Chrissy Kapralos

A Team of Experts

Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card