Credit Explained

High Credit Scores

  • Credit Range: Good (661 to 780), and Excellent (781-850).
  • Commonality: According to Experian, around 23% of people have Excellent credit scores, and around 38% fall Good range.
  • Credit Score Influencers: Your credit score is calculated based on payment history (35%), outstanding debt (30%), credit length (15%), credit inquiries (15%), and credit diversity (10%).
  • Credit Limits: Consumers with good credit scores are often approved for higher borrowing limits right off the bat, as their credit reports demonstrate punctual repayment habits.
  • Credit Rewards: Good credit unlocks a variety of credit card rewards, such as travel points, cash back, and great sign-up bonuses.
  • Credit Improvement: All things considered, it's easy to increase a good score, because your slate is clean and many improvement opportunities are already available to you.
  • Auto Financing Terms: Interest rates on car loans are affected by your credit score. If your score is Good, Very Good, or Excellent, you'll enjoy access to some of the best rates on the market.
  • Room for Negotiation: In some cases, you can use your good credit score as leverage to lower loan interest rates by pointing to other offers you've received from lenders.
  • Car Insurance Rates: Car insurance, home, and other forms of property insurance usually demand less expensive premiums from individuals with favorable credit.
  • Overall Impact: Generally, consumers with good scores earn a stamp of approval from most lenders, as well as great interest rates on credit cards and loans.

Low Credit Scores

  • Credit Range: Fair (601-660), Poor (500 to 600), and Very Poor (300 to 499).
  • Commonality: Experian places the percentage of people with a Fair credit score at 13%, Poor credit score at 21%, and Very Poor at 5%.
  • Credit Score Influencers: Whether your credit is Excellent or Very Poor, the same factors affect your score.
  • Credit Limits: If your score is low, you may still get approved for credit, but the limit will be much lower than what you'd get with good credit.
  • Credit Rewards: While there are plenty of bad-credit-friendly credit cards, they usually don't offer the types of rewards available to consumers with good credit.
  • Credit Improvement: Boosting a bad score takes time and patience. Paying down debts, setting payment reminders, using credit to build good credit, and frequently checking your score are a few good strategies.
  • Auto Financing Terms: It's possible to receive an auto loan with bad credit, but niceties like low APR financing probably won't be available to you.
  • Room for Negotiation: More often than not, companies won't give consumers with low credit scores much leeway.
  • Car Insurance Rates: The lower the credit score, the higher the car insurance premium. Many car insurers take a low credit score as a red flag that you're more likely to file a claim.
  • Overall Impact: Credit companies and lenders consider consumers with bad scores to be "high risk," and if they approve a loan or credit line, it'll be limited with high interest rates. 

Want to improve your credit?
At Fort City Chrysler, we have a team that specializes in helping everyone get approved for financing. Learn more about how we can help get you on the right track.


Fort City Chrysler Sales Ltd.

8424 Alaska Road
Directions Fort St. John, BC V1J5L6

  • Sales: 2507875220
  • Service: 2507875220
  • Parts: 2507875220