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Knowing where your credit falls on the credit score range is important. Depending on your scores and ranking, you may receive lower interest rates and may be more likely to be approved for loans and other credit products.

Generally, a credit company or lender will look at both your credit report and your credit score in Canada, as well as a variety of other factors (employment status, income, debt levels etc.) to determine your creditworthiness.

You are the only one who can improve your credit scores, this makes understanding your credit that much more important.

Summary Of Article: Key Takeaways

  • Credit scores range from 300 to 900.
    • Good credit scores range from 660 to 900.
    • Bad credit scores range from 659 to 300. 
  • You have multiple credit scores. All credit score providers have their own scoring models. If you check your credit with two different providers, you may see two different scores. 
  • You can get your credit score in Canada for free from Equifax, Transunion (QC only), Loans Canada CompareHub, Borrowell, and other third-party service providers. 
  • These are five common factors used to calculate your credit score in Canada: Payment history, debt-to-credit ratio, public records, credit history and credit inquiries.

What Is A Good Credit Score In Canada? 

A good credit score range is usually between 660 to 900. Of course, there are many different types of credit scores and scoring models.

This means that what one lender considers to be a ”good” credit score will not be the same for another lender. Furthermore, the credit scores a lender sees are different from those that you might have access to. Additionally, your Equifax credit scores might be different from your TransUnion scores. 

Credit Score Ranges In Canada

As we mentioned above, there is no definitive model for what certain credit scores mean to all lenders and creditors. One lender may consider credit scores of 760 to be excellent, while another may consider scores above 780 to be excellent.

It all depends on what scoring model that specific lender uses and how they use it during their approval process. That being said, if you’re interested in knowing what your credit scores mean, here are some general guidelines that can help.

Canadian credit score ranges
Credit Score Range
ExcellentScores 760+
Very GoodScores 725 -759
GoodScores  660 – 724
FairScores 560 – 659
Poor Scores 300 – 559

How Do I Check My Credit Score In Canada?

You can check your credit score for free through the major credit bureaus Equifax and Transunion. However, Transunion has many restrictions on how you can access your credit score and is only available for free the Quebec residents. 

You can also access your credit scores through some banks and third-party service providers like Loans Canada Compare Hub, Borrowell and Credit Karma.

 CostCredit ScoreCredit Report 
CompareHub logoFreeYesYesVisit Site
Borrowell logoFreeYesYesVisit Site
CreditKarma logoFreeYesYes-

Why Is My Credit Score Different? 

There are two different credit reporting bureaus in Canada, Equifax and Transunion. Each has its own approach to determining scores.

Of course, you can check your score for free from several third-party providers. However, they can calculate your score using their own methods. That means your credit range can shift depending on where you look.

You can use Compare Hub, which has the Equifax score and report. 

Is 600 A Good Credit Score In Canada?

In general, a 600 credit score falls under the “fair” credit score range. With a 600 credit score, you may be able to qualify for a loan with a bank, however, you probably won’t get the most competitive rate.

Borrowers with a 600 credit score may have better luck qualifying for a loan with alternative lenders whose lending criteria are much more lax than banks. 

Is 620 A Good Credit Score In Canada?

If you have a 620 credit score, it usually means you have fair credit. While certain lenders may consider your credit score to be risky, keep in mind that credit scores are not the only deciding factor when it comes to loan and credit approval.

Is 750 A Good Credit Score In Canada?

A credit score of 750 is considered very good (scores between 725 and 759). In fact, with a credit score of 750, you’re only 10 points away from excellent as credit scores that fall between 760 and 900 are considered excellent.

Is 800 A Good Credit Score In Canada?

Credit scores above 759 are considered excellent. Lenders that check credit will be happy to see that you have a high credit score, but ultimately loan approval depends on a variety of factors.

Free Equifax credit score

What Factors Affect The Calculation Of Your Credit Scores In Canada? 

Payment history, credit history, public records, debt-to-credit ratio and credit inquiries, are five common factors used to calculate credit scores. If you’re interested in building your credit, understanding what these factors are and how they may impact your credit can help you create a plan to build healthy credit habits.

Credit Score Calculation
Payment History ~35%
Debt-to-Credit Ratio~30%
Length Of Credit History~15%
Public Records~10%
*Please note that these numbers can vary depending on the credit scoring model used to calculate your credit score.

1. Payment History (~35%)

How you manage your payments is one important factor used during the calculation of your credit scores. This includes how many accounts you have open as well as all the positive and negative information about these accounts.

For example, if you make payments on time or late, how often you make late payments, how late the payments were, how much you owe, and whether or not any accounts are delinquent. 

2. Debt-to-Credit Ratio (~30%)

Sometimes referred to as a credit utilization ratio, many credit scoring models take into account how high your balance is compared to your total available credit limit. Specifically when it comes to revolving credit, for example, credit cards and lines of credit. 

3. Length Of Credit History (~15%)

Your credit file includes how old your credit accounts are and will influence the calculation of your credit scores. The importance of this factor will differ depending on the scoring models, but generally speaking, how long your oldest and newest accounts have been open is important.

4. Public Records (~10%)

Public records include bankruptcies, collection issues, liens, lawsuits, etc. Having these types of public records on your credit report may have a negative effect on your credit scores. 

5. Inquires (~10%)

When a creditor or lender checks your credit file (because they are in the process of extending credit to you) it is called an inquiry and is noted in your credit report. These types of credit inquiries (also called hard checks), can impact the calculation of your credit scores. 

How To Improve Your Credit Score Range In Canada?

As mentioned, there are many factors that can affect your credit scores. Working on improving those factors can help your credit score. Similarly, here are a few other things you can do to help improve your credit score range:

  • Don’t Apply For Too Many Credit Products – When searching for a loan or credit card, it’s important to limit the number of credit applications you submit. Too many within a short period of time can negatively affect your credit scores. This is because each credit application generally requires a hard credit check which can hurt your credit scores.
  • Use A Secured Credit Card – If you can’t qualify for a regular credit card due to bad credit, consider a secured credit card. They simply require a security deposit for approval and payments are reported to the credit bureau(s). 
  • Remove Errors On Your Credit ReportErrors on your credit report can cause your credit score to be lower than it should. Check your credit report and having any errors rectified may help your credit score bounce back up.

Bottom Line

The good news is that the health of your credit may be improved through responsible management of your credit products. Responsible use of your credit cards and loans, over time, may improve your credit score and therefore allow you to qualify for other larger loans, for example, a mortgage, in the future.

Credit Score Range FAQs

What is a bad credit score in Canada? 

In Canada, your credit scores can range from 300 to 900. If you have a credit score below 560, it means you have poor credit in the eyes of some lenders and creditors. While a bad credit score may affect your ability to access affordable credit products, it doesn’t mean you’re stuck with it. You can work on building your credit scores by reducing your credit utilization ratio and by paying your bills on time. 

Can I get a free credit score in Canada?

In Canada, consumers can get their credit scores for free from a number of different companies. Equifax offers free credit scores across Canada and TransUnion offers them in Quebec. Many of the major banks offer their clients free credit scores. If your bank does not, you can get your score for free from a third-party provider like Compare Hub, Mogo, Borrowell, or Credit Karma. 

How can I improve my credit score in Canada?

All credit scores react differently. What helps improve your score may not work for someone else. It’s important to build healthy credit habits by always making your payments on time, and keeping your credit utilization ratio low by paying off your credit cards twice a month or by increasing your available limit.

What credit score do I need to get a mortgage?

In order to get approved for a mortgage from a major financial institution in Canada, you should aim to have a credit score of at least 660. If your credit score is lower, you may want to consider waiting to improve your credit or applying for a mortgage from an alternative lender. 

Is 700 a good credit score? 

Yes, a credit score of 700 falls under the “good” credit score range. Remember that lenders and creditors view credit scores ranges differently. Good credit means different things to different creditors.
Caitlin Wood, BA avatar on Loans Canada
Caitlin Wood, BA

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

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