Unfortunately, in Saint John and the rest of New Brunswick, the average debt per individual is growing more rapidly than any other province in the country.
Of course, many people in Saint John can live with debt or even dig themselves out of it, but others aren’t so lucky. Struggling with constant debt or other financial issues can lead to low credit scores and complicated credit history. Thankfully, there are services, products, and individuals in Saint John that can help you improve your credit and tackle debt when you need it most.
Factors that Affect Your Credit Score in Saint John
Before looking at ways to improve your credit in Saint John and the rest of Canada, you need to understand the factors that affect your credit score. In total, there are five different factors that go into deciding what your credit score will be. Each of these factors plays an important role.
However, each of the factors has a different “weight” attached to it. For example, some factors have a heavy influence on your overall credit score, while others do not. The five factors that influence and affect your credit score are:
Payment History (35%)
As you might have imagined, your payment history over time is the heaviest factor when it comes to deciding your credit score. If you have a positive history and have made all (or most) of your payments on time, your credit score will reflect that. But, if your repayment history is spotty and you have missed a multiple of payments, then your score will likely be lower. As a result, it is important to pay your bills on time to ensure your score isn’t negatively affected.
Falling behind on your credit card payments? If so, be sure to read this.
Amount of Debts Owed (30%)
The amount of debt that you currently have and owe is also a large factor in deciding your credit score. The more debt you have, the lower your credit score will be. Having a lot of debt makes lending you additional money more risky, as well. If you have a lot of debt and want to grow your credit score, one of the best things to do is eliminate your debt as quickly as possible.
Click here to learn a few ways of conquering your high-interest debt.
Length of Credit History (15%)
A Saint John borrower who has an established credit history and has been borrowing for years is likely to have a better credit score than someone in Saint John who is brand new to using credit. Someone with a track record of using credit is going to be seen as much less risky when compared to a newcomer. So if you have old and established credit accounts, it is often wise to keep them open even if you don’t use them.
New Credit Applications (15%)
Whenever you apply for a new credit card or other credit product in Saint John or Canada in general, your lender will perform a “hard pull” on your account. This hard pull will drop your credit score a little bit for a few months. So if you are constantly applying for a variety of different credit accounts at the same time, you are likely going to see your credit score drop.
Read this for more information about credit inquiries.
Types of Credit Used (10%)
The more variety you have in the types of credit you use, the better your credit score will be. So those in Saint John who have a car loan, a personal loan, and a credit card are likely to have a higher score than a person in Saint John with just a simple credit card.
Looking for an installment loan in Saint John? Search here.
What is Included in a Credit Report
While many in Saint John are concerned about their three-digit credit score, understanding your credit report can be just as important. So what is on your actual credit report? Well, your credit report contains things like:
- Your name
- Your DOB
- Your addresses
- Your passport information
- All credit accounts in your name and your payment history
- Cell phone and internet accounts
- Various notes about black marks, credit requests and fraud alerts
While those are not all of the things that are included in your report, they are among the most important. As you can see, your credit report is home to a lot of different information both personal and financial-related. This is good if you have a solid credit history and are in good standing, but if your history is spotty or negative, this can cause a lot of worry. Thankfully, negative information typically only stays on your credit report for about 6-7 years, depending on what it is.
Check out this infographic to learn more about how credit scores are calculated.
Products to Help Improve Your Credit in Saint John
Now that you know about credit scores and your credit report, what should you do if they are in bad shape? While many try and get out of debt troubles alone, you don’t have to do that. There are plenty of products and services offered in Saint John that can help you improve your credit. These include:
- Secured credit cards
- Credit counselling
- Debt consolidation programs
- Credit Rehab Savings Program
While each of these services is different, they can each help out in their own unique way.
Click this link if you need a bad credit loan in Saint John.
Effectively Improving Your Credit
Improving your credit alone can be difficult. If you struggle with low credit, consider reaching out to us at Loans Canada. We are confident that we can set you up with professionals and specialists in your area to help you improve your credit in Saint John.
