Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Many Canadians may want to know what their credit scores are in order to see how it will affect their ability to access future credit products. A credit score is a 3-digit number between 300 – 900 that lenders, creditors, landlords, and even employers use to determine your riskiness and likelihood to pay bills or debt.
Knowing your credit scores and how you compare to other Canadians may help motivate you to improve your credit.
While we don’t know the exact formula for how each of the two Canadian credit bureaus calculates your credit scores, there are 5 common factors used in most credit scoring models:
In Canada, credit scores range from 300 to 900. The closer your credit scores are to 900, the less risky you’ll seem as a borrower. This can open financial doors and give you access to affordable credit products and loans in the future when you need them. Depending on where you fall between this range, your credit can vary between poor, fair, good, very good and excellent.
It’s important to keep in mind that while healthy credit scores are important, it’s never a good idea to become obsessed with having a perfect score. Especially considering that you have multiple credit scores in Canada which are impacted by the credit scoring model used to calculate your score but also the information in your credit report. Not all lenders and creditors report your credit information to both credit bureaus. Some only report to one, while others report to none. The discrepancies in your credit reports can also impact your credit score calculations.
According to TransUnion (one of the two main credit reporting bureaus in Canada), the average Canadian credit score is around 650. Based on the credit score ranges we discussed above, most Canadians have fair credit, though some lenders may consider 650 as good.
According to Equifax, Canada’s second credit reporting bureau, the highest percentage of Canadian citizens with a credit score of 750 and higher are in the 65 and older age group. On the other hand, the highest percentage of Canadians with a score of 520 and under are in the 25 and younger age group.
Generally speaking, mature consumers are more likely to have higher scores, simply because they have had more time to build their credit. But, it’s important to keep in mind that this is not always the case, just because you’re under 25 doesn’t mean you’ll automatically have bad credit.
There are a couple of reasons why this is often the case:
As you can see, good credit is all about time. So, don’t beat yourself up if you’re currently struggling to improve or build your credit scores, give it time and it will happen.
Since the health of your credit can be tied to the overall health of your finances, it makes sense that there is at the very least a small correlation between the province you live in and your credit score. Certain provinces or territories offer Canadians more financial opportunities or more financial hurdles, all of which can have an effect on your credit score. Some of these opportunities or hurdles could be:
Based on a study by Borrowell (Average Credit Score By Canadian City), below is a list of the cities in Canada with the highest credit scores.
Ontario | Markham – 720 Toronto – 696 Mississauga – 695 Ottawa – 688 Kitchener – 679 Brampton – 675 Hamilton – 660 |
British Columbia | Vancouver – 705 Victoria – 694 Surrey – 675 |
Quebec | Montreal – 687 Quebec City – 683 Laval – 679 Gatineau – 663 |
Alberta | Calgary – 667 Edmonton – 649 |
Nova Scotia | Halifax – 664 |
Manitoba | Winnipeg – 661 |
Saskatchewan | Regina – 659 Saskatoon – 656 |
New Brunswick | Fredericton – 658 Moncton – 640 |
Of the cities mentioned, Moncton, NB had the lowest credit score of 640, while Markham and Vancouver had the highest credit scores (720 and 705 respectively). Of the 22 cities listed, 17 of the 22 cities mentioned had a “good” credit score rating, while the other 5 cities fell within the “fair” credit score range.
Debt is one of the five factors that is taken into consideration when a credit score is calculated. Therefore, it makes sense that the average debt level of the citizens of each province could also affect the average credit score by province.
According to reports by Equifax from 2019 and 2021, here is the average individual consumer debt load (non-mortgage) Canadians have by province:
Province | Average Individual Consumer Debt(non-mortgage) 2021 | Average Individual Consumer Debt(non-mortgage) 2019 |
British Columbia | $21,262 | $24,854 |
Alberta | $25,172 | $29,117 |
Saskatchewan | $22,426 | $24,853 |
Manitoba | $16,821 | $18,815 |
Ontario | $20,736 | $24,032 |
Quebec | $18,049 | $19,410 |
New Brunswick | $22,012 | $23,467 |
Nova Scotia | $20,704 | $22,546 |
Prince Edward Island | $21,963 | $23,043 |
Newfoundland | $23,010 | $23,778 |
According to Equifax, in 2021, 78% of Canadians checked their credit scores at least once a year, which is a stark contrast from five years ago where 67% of Canadians said they rarely or have never checked it. All Canadians should check their credit (scores and reports) at least once a year, not only just to know what their credit is but to make sure that they have not been the victim of identity theft.
Cost | Credit Score | Credit Report | ||
![]() | Free | Yes | Yes | Visit Site |
![]() | Free | Yes | No | Visit Site |
![]() | Free | Yes | Yes | Visit Site |
![]() | Free | Yes | Yes | - |
When it comes to checking your credit with one of the above third-party providers or directly from a credit bureau, you’re only getting one of your credit scores. In general, you’ll have more than one credit score because there are many different credit scoring models. If you check your credit with Mogo and then with Equifax, for example, both of those scores will likely be different.
The great news is, while all the stuff we discussed above does influence your credit scores when it’s all said and done, they’re your credit scores and you have the power to make them what you want them to be. You can develop great financial habits, pay down debt, and work toward the financial future you’ve always wanted, regardless of where you live.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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