In order for you to be approved for a loan, there are a few steps to be taken in the application process. A major determining factor in your loan application is your credit score. Your credit score can determine whether or not you are approved for a loan. This three-digit numerical value, ranging from 300-850, is determined by a few factors: your payment history, your level of debt, your credit history, how many credit applications you have made, and the different types of credit you have had and currently have. Each of these factors weigh differently towards your final credit score number. Your payment history, which makes up about 35% of your credit score, is one of the most important factors in determining your credit score. Paying your credit card bills on time, neglecting to pay them at all or claiming bankruptcy will all mainly play a role in a sufficient or poor credit score. Recent issues involving your credit card will prove to be more harmful than past issues. Your level of debt makes up for 30% of your credit score. If you take advantage of your credit limits, this will result in a lower score. It is best to keep your balance lower than at least 30% of your credit card limit. If you have a limit of $1000 on your credit card, it is recommended that you keep your balance at a maximum of $300 before applying for a loan. How long you have had your credit determines 15% of your credit score. Contrary to popular belief, having a long credit history is in fact a good thing. With a longer credit history, you are giving lenders the opportunity to view how responsible you are with funds and it gives lenders a better idea of how you spend these funds. Depending on how many credit loans you have is 10% of your credit score. Whenever you apply for another loan, an inquiry is placed on your credit account. From there, lenders are able to see how many times you have applied for a loan. Too many inquiries may give off the impression that you are in financial disarray. The final 10% is determined by the different types of credit accounts you have open. The variety of credit accounts which you currently have ultimately shows that you are capable of managing different credits. The chances of being approved for a loan with bad credit is not very good. However, there are some companies where everyone’s loan is approved in Calgary.