While the average credit score in Winnipeg isn’t horrible, it is still below the national average in Canada. Having a low credit score can make it difficult to secure good loans in Winnipeg and can make improving your financial situation difficult. Thankfully, there are some credit improvement tactics that anyone can use to improve their credit score and report quickly.
This is why all Canadians should be monitoring their credit scores
Winnipeg Credit Score Ranges
But before we look at credit improvement tactics, it is important to be aware of the credit score ranges in Winnipeg and the rest of Canada. Not only is it important to know what they are, but also what they mean. In Canada, credit scores range from 300 to 900 and the higher your score, the better your credit.
Generally, credit scores in Canada are broken down by ranges. These include:
- Excellent (Scores 780+)
- Very Good (Scores 779-720)
- Good (Scores 719-680)
- Average (Scores 679-620)
- Poor (Scores 619-580)
- Very Poor (Scores 579- 500)
- Terrible (less than 500)
You can use these ranges as a rough guide to determine where you stand and the types of rates that you will receive from lenders. Anything over 700 and you shouldn’t struggle to get a loan, but of course, those within the “Excellent” range will get the best rates and terms. However, the lower your score gets, the worse rates you will be offered. And if your score drops quite low, some lenders in Winnipeg might even be unwilling to work with you at all.
Take a look at this infographic to learn how credit scores are calculated.
Habits That Are Ruining Your Credit
As you could imagine, having a low credit can severely inhibit your financial life in a number of ways. So what exactly causes bad credit and leads Winnipeg consumers to have it? Well generally, it just comes down to bad financial habits. These include:
- Missing frequent payments on credit cards or loans
- Misuse of credit cards (overspending, opening up many new accounts, etc.)
- Having too much debt, or a high credit utilization rate
- Constantly applying for new credit.
Of course, emergencies like sudden illnesses, job loss, or unexpected travel can also lead to bad credit. However, completely ruining your credit doesn’t happen overnight, so if you start to see your credit score dropping, you should take steps to rectify this quickly.
Thankfully, there are several good habits that you can adopt that will improve your credit. These include things like:
- Paying down debt
- Using credit cards intelligently and not overspending
- Checking your credit report frequently to make sure there are no errors
- Increase your income or lower your expenses
- Create a budget and stick to it.
Need a bad credit loan in Winnipeg? Look for one here.
Credit Building Products in Winnipeg
While some can improve their credit on their own using the tips we just mentioned, others may need some assistance. Thankfully, there are many different types of credit building products that people in Winnipeg can apply for in order to get their credit or finances in check. We’ll now take a closer look at some of these credit building products and how they can help you out.
Secured Credit Card
A secured credit card is a card that requires a deposit. Often the deposit amount will also be your credit limit, although this will not always be the case. A secured credit card is a great way for those consumers in Winnipeg with bad credit, who cannot get approved for a regular credit card, to work at improving their credit score.
Credit Rehab Savings Program
This is a creative and easy way to rebuild your credit. Using flexible payment options, you will be able to save money at the same time you are improving your credit score. Those with no or bad credit can apply and build their credit quickly. Those in this program make small weekly payments to their provider, who will then report the good credit habits to the bureaus, which will help increase your credit score.
For more information about credit rehab savings programs, check this out.
Credit Counselling
This method will involve you working closely with a credit counsellor in Winnipeg to improve your overall financial health, including your credit. You will meet with a counsellor to discuss your finances and the issues you are dealing with. They will work with you to come up with techniques and habits to incorporate into your daily life to help your finances and credit. This could include helping you create a budget, assisting you or correcting any bad habits. Of course, while the counsellor can help, they cannot do everything for you. It is still up to you to ensure you are carrying out their plans.
Curious about credit counselling in Winnipeg? If so, look at this article.
Debt Consolidation Program
If excessive debt is the reason why your credit is suffering and you’re looking for a fresh start, a debt consolidation program could be the solution you need. With a debt consolidation program, you will work with a credit counsellor in Winnipeg to create a plan of action to get out of debt. Your counsellor will negotiate with your creditors and come to an agreement on how you will pay them back.
Typically, counsellors can negotiate lower interest rates, longer repayment periods, and even get fees waived. Once a plan has been made, you will make payments to your counsellor who will then distribute the correct amounts to the correct lenders. This makes your monthly payments much easier and makes sure nothing is missed.
Helping You Improve Your Credit
Improving your credit is very important to your financial health. If you need some assistance in improving your credit, Loans Canada has a variety of options to fit the needs of all Winnipeg consumers.
