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📅 Last Updated: November 25, 2022
✏️ Written By Kale Havervold
🕵️ Fact-Checked by Caitlin Wood

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 (Scores 760+)
  • Very Good (Scores 759 – 725)
  • Good (Scores 724 – 660)
  • Fair (Scored 659 – 560)
  • Poor (Scores 559 – 300)

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.

Debt (30%)

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.

Diversity (10%)

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.

How is a credit score calculated?

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.

Frequently Asked Questions

Does having too much available credit decrease your credit score?

With more available credit overall, your credit utilization ratio (debt vs available credit) will decrease, which should help increase your score. However, having too many open credit cards for example could hurt your chances of approval. You want to strike a balance between different types of credit (e.g. car loan, credit card, line of credit), and having a good utilization ratio.

How is my credit score calculated?

Several factors will influence your credit score. About a third of your credit score is based on the timeliness of your payments. Another third of your score is based on your credit utilization, meaning the amount of debt versus your available credit. The remainder of your score is based on the length of your credit history, the variety of credit products, and if you have any recently added credit.

If I cancel my credit card, will my credit score improve?

In many cases, canceling a credit card will decrease your credit score. One of the main factors in calculating your credit rating is the average age of your credit products. Lenders are more inclined to approve you if they see you have credit accounts that have been established for a long time. Canceling your credit card will remove all that valuable history.

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.

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