Lenders and creditors use credit scores to determine whether to offer you various credit products, like personal loans, credit cards, and mortgages. Even landlords, employers, and insurance providers may look at your credit score for screening purposes. That’s why it’s so important to make sure your credit score is strong.
So, what’s considered good credit? Is 700 a good credit score in Canada? Or should you strive for something higher?
Key Points
- A credit score of 700 in Canada is considered good credit.
- With a 700 credit score, you may be able to qualify for various credit and loan products with little issue, as long as other factors in your financial life are strong.
- If you’re looking to improve your credit score, make sure you pay all bills on time, keep your credit card expenditures to less than 30% of your credit limit, and avoid applying for too many loans at once.
Is 700 A Good Credit Score In Canada?
If you have a credit score of at least 700, then you have good credit. With a credit score of 700, you may more easily qualify for credit products and gain access to better interest rates and terms.
However, this also depends on the lender you’re dealing with, as well as other aspects of your financial life. While a credit score of 700 may technically be considered good, some landlords may still prefer something higher.
Credit Score Ranges In Canada
Credit scores in Canada range from 300 to 900. According to Equifax, credit score ranges and their associated ratings are as follows:
| Credit Score Range | Rating |
| 760 – 900 | Excellent |
| 725 -759 | Very Good |
| 660 – 724 | Good |
| 560 – 659 | Fair |
| 300 – 559 | Poor |
| Why Do You Have Different Credit Scores? Your credit score is calculated based on the information on your credit report. Depending on the lender, credit bureau, or credit score provider, the score you see can vary, as there are different scoring models. Your credit score can also vary based on the information reported to the credit bureaus. In Canada, there are two major credit bureaus: Equifax and TransUnion. Not all lenders and creditors report to both bureaus, so this discrepancy in information can affect the way your credit score is calculated. As such, it may be a good idea to check your credit file with both credit bureaus at least once a year to see how you’re doing across the board. |
Is A 700 Credit Score Below Average In Canada?
The majority of companies in Canada use Equifax and TransUnion as their source for consumers’ credit scores. While some entities may also look at FICO credit scores — which is a U.S. company that sells its score to the two major credit bureaus in Canada — they don’t typically rely on it. Instead, Equifax and TransUnion are more relied upon for credit scores in Canada.
Average Credit Scores By Age In Canada
If you’re curious to know where you rank compared to the rest of Canada, check out the average credit scores by age:
| Age | Average Credit Score |
| 18 – 25 | 692 |
| 26 – 35 | ~697 |
| 36 – 45 | ~710 |
| 46 – 55 | ~718 |
| 56 – 65 | ~737 |
| 65+ | ~750 |
How Will A 700 Credit Score In Canada Impact You?
What can a 700 credit score in Canada get you? Is it enough to get you the best rates? Let’s dig in.
700 Credit Score And Loans
A 700 credit score should be enough to get you approved for a loan, given that you meet the lender’s other financial requirements. Moreover, a 700 credit score should give you access to fairly good rates and terms. You shouldn’t have a problem qualifying with a big bank as well.
That being said, there is no “magic number” when it comes to getting approved for new credit. Generally speaking, higher credit scores mean you pose less risk to the lender, which in turn can help you qualify for a loan.
| Note: It’s important to note here that if you checked your credit and see that you have a score of 700, that does not mean a potential lender will see the same number when they pull your credit since credit scores can be calculated in many ways. |
Can You Qualify For A Premium Credit Card With A 700 Credit Score?
With a 700 credit score, you should be able to qualify for most credit cards in Canada. However, some premium credit cards may require excellent credit (760 – 900). That said, even if you meet the credit requirements, a credit card company can reject you if you don’t meet their other requirements such as income and debt level.
Personal Loans And 700 Credit Scores
With a 700 credit score, you can qualify for most personal loans, depending on the other factors your lender considers during their approval process.
Typically, lenders want your credit score to be at least 650 before they approve you, unless you’re applying with a company that specializes in clients with poor credit. With a score of 700, you’ll be over this minimum threshold.
If you need a personal loan but your credit score is preventing you from qualifying with your financial institution, try applying with an alternative lender. Their requirements are often easier, so you may have better luck getting approved. However, it’s important to note that these lenders often charge higher rates as a result.
Car Loans And 700 Credit Scores
A car loan can also be relatively easy to get approved for with a 700 credit score. In fact, some financing locations will approve you with lower credit scores and may focus their approval process on other criteria. Since a car loan is secured by your vehicle, you may be able to get a car loan with a credit score much lower than 700.
Mortgages And 700 Credit Scores
Mortgages can be harder to qualify for, given the very high loan amounts typically required to cover the purchase price of a home. It’s recommended to have a credit score of at least 680 to increases your chances of getting approved at better rates. The higher your credit score, the better.
Since a credit score of 700 is slightly over the 680 minimum, you may be able to qualify for a mortgage. However, your credit score is only one piece of the puzzle when it comes to getting approved for a mortgage. You may also need to pass the mortgage stress test, have a minimum down payment of at least 5% (depending on the purchase price), and have a manageable debt-to-income ratio, just to name a few.
How To Improve Your Credit Score From Good To Excellent
If you’re interested in working on improving your credit score, there are a few things you can try:
Pay Your Bills On Time
Your payment history often makes up about 35% of your credit score calculation. If you consistently pay your debts on time and in full, you could see your credit score improve over time.
Lower Your Credit Utilization Ratio
Your credit utilization ratio refers to the amount of credit you’re using relative to your total credit. By increasing your credit limit and spending less of your available credit, you may be able to lower your credit utilization ratio. This is another important factor that influences your credit score. Experts recommend a ratio of 30% or lower for the best results.
Monitor Your Credit Score
You can keep tabs on your credit score by requesting access to your score from one of the major credit bureaus. You can also check your score for free from a handful of platforms online, including Loans Canada’s CompareHub.
Check For Errors On Your Credit Report
While the credit bureaus do everything they can to report your credit information correctly, mistakes happen. These errors can unfairly pull your credit score down. This is why it’s important to monitor your credit reports on a regular basis.
If you discover any mistakes, have them fixed immediately. Remember, only real errors can be removed from your credit report.
Watch Out For Fraud And Identity Theft
Having your identity stolen could potentially damage your credit if the suspect in question applies for and misuses credit cards or loans in your name. This is another reason why you should review your credit report regularly. Doing so will give you a chance to pinpoint any suspicious activity and have it dealt with right away.
Don’t Apply For Too Much Credit
Responsibly managing your debt can help to improve your credit over time. Just make sure you take on debt that you can afford and manage. Too much debt has the potential to hurt your credit.
Bottom Line
If you have a credit score of 700, then you’re in relatively good shape, financially speaking. A score in this range means you’ve managed your credit products responsibly. Getting approved for basic credit products and loans shouldn’t be too much of a struggle for most consumers whose scores fall in the 700s.
