There are two basic ways of describing your credit: good or bad. At least thats how most people would break it down.

If you’re not most people or you’re a finance professional in Canada, then you probably classify credit as either prime or subprime credit.

Get to know the differences with these prime and subprime answers from Check Your Credit First Canada:

What is Prime Credit in Canada?

Prime credit in Canada is defined as positive or strong credit. If someone has prime credit, then their credit is considered good credit.

Interest rates available to prime customers in Canada can vary but they generally revolve around the lowest rates available.

What does Prime Lending Rate mean in Canada?

While prime rate can vary from bank to bank in Canada, it is generally the best interest rate available.

Depending on the bank and the type of loan, a preferred customer (a customer with good credit) could be charged straight prime or prime + or prime – a specific amount of interest.

What is Sub Prime Credit in Canada?

In Canada subprime credit, also known as non prime credit, is defined as poor or bad credit. Because the word sub means below, subprime describes below prime credit or credit that is beneath prime.

Subprime interest rates in Canada can range from slightly above prime interest rates to very high interest rates.

The level of subprime credit in Canada and The United States is on the rise. This is a combination of an increased number of consumers defaulting on their loans, a rise in Canadian bankruptcies and the financial industries reaction to a recent recession in Canada.

Find out if you have prime credit or to check if your credit is subprime, check your Canadian credit report and credit score now – CLICK HERE.