What is your credit score?
Your Credit Score is a numerical score calculated by assigning values to all the items in your basic credit report, credit history and financial life. It is used to pre-screen all credit applicants and eliminate those who fall below a certain score.
It is also used to determine what sorts and amounts of credit you qualify for. It is used as the primary lending tool by most lenders.
Here's a chart that explains your score:
Lenders (and employers or landlords) will first look at your Credit Score to determine if it is worth processing your application.
720 – 850 – Excellent – The best financing terms and represents the best score range
700 – 719 – Very Good – qualifies to receive favourable financing
675 – 699 – Average – will qualify for most loans
620 – 674 – Sub-prime – May qualify but will pay higher interest
560 – 619 – Risky – Will have trouble getting a loan
500 – 559 – Very Risky – You need to work on improving your rating
