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Credit Scores in Canada
Credit Scores in Canada — Ranges, What’s “Good,” and How to Improve
Learn how Canadian credit scores work, what a good credit score is, how to check yours for free, and proven steps to raise it. Try our Credit Score Estimator, Credit Repair Helper, and Utilization Calculator, then compare loan options that fit your profile.
Canada range
Good score
Major bureaus
What is a credit score in Canada
A credit score is a three-digit number lenders use to estimate how reliably you repay borrowed money. Canadian scores typically range from 300 to 900 — higher is better. Scores help determine whether you’re approved and the rate you pay for products like personal loans, auto loans, home equity loans, credit cards, and mortgages.
Canadian credit score ranges (300–900)
These ranges are commonly used in Canada. Exact cutoffs vary by lender and model, but they’re a useful guide.
| Band | Range | Typical outcomes | Examples |
|---|---|---|---|
| Poor | 300–559 | Limited options; higher rates | Secured cards; subprime loans |
| Fair | 560–659 | Approval possible with conditions | Shorter terms; higher down payments |
| Good | 660–724/749 | Competitive approvals and rates | Most cards, auto, personal loans |
| Very Good | 725–759 | Strong approvals; low rates | Premium cards; preferred pricing |
| Excellent | 760+ | Best available offers | Top-tier mortgage and HELOC rates |
What’s a good credit score for common products
How credit scores are calculated
While exact models vary, five pillars typically drive your score:
- Payment history (~35%): on-time vs late/missed payments
- Credit utilization (~30%): balances vs limits (aim <30%, best <10%)
- Credit age (~15%): average age of accounts
- Mix of credit (~10%): revolving + installment variety
- New credit (~10%): recent hard inquiries/new accounts
Tip: keeping utilization below 29% overall and below 50% on any single card avoids common score penalties.
Factor weights
How to check your credit score in Canada
Canada’s two major bureaus are Equifax and TransUnion. Lenders may use either one, and scores can differ because not all creditors report to both or use the same model. Checking your own score is typically a soft inquiry and doesn’t lower your score.
Soft vs hard inquiries
- Soft: your own checks, pre-approvals, some employment/insurance
- Hard: new loans/credit cards, some limit increases
- Rate shopping windows for auto/mortgage may group checks
Why scores vary
- Different data reported to each bureau
- Different scoring models and timing
- Solution: monitor both when possible
Credit Score Estimator
Estimate your likely score band and get a personalized action plan. No personal data required.
Where you might sit today
Credit Repair Helper (90-day plan)
Toggle the steps you want and export a simple plan you can follow.
Utilization Calculator
Enter card limits and balances to see overall utilization and target balances to hit 29% and 9%.
Who can see your credit score
Creditors & lenders
Insurance providers
Employers/landlords
Friends, family, and employers without consent can’t access your score. Inquiry history shows who pulled your report.
How long items stay on your credit report
| Item | Typical retention | Notes |
|---|---|---|
| On-time payments | Long-term positive | Builds history over years |
| Late/missed payments | Up to ~6 years | Severity and province may vary |
| Collections | Up to ~6 years | Status updates when paid/settled |
| Bankruptcy | ~6–7 years after discharge | Varies by bureau/province |
| Consumer proposal | ~3 years after completion | Or up to ~6 years from filing |
| Hard inquiries | ~2–3 years visible | Score impact fades over time |
Business credit scores in Canada
Business credit reports are separate from personal credit and matter for company financing. Many lenders review both. Keep business accounts current, separate business/personal spending, and maintain up-to-date financials when applying for business loans.
Credit Scores Canada — FAQ
What is a good credit score in Canada
Many lenders view 660+ as “good,” 725–759 “very good,” and 760+ “excellent.” Cutoffs vary by product and lender.
What is the average Canadian credit score
A large share of Canadians fall in the good range, but distribution varies by age, province, and product mix.
How are credit scores calculated
Five key factors: payment history, utilization, credit age, mix of credit, and new credit inquiries.
Does checking my own score lower it
No. Your own checks are typically soft and don’t impact your score.
How fast can I improve my score
You can see improvements within billing cycles by lowering utilization and paying on time; major changes take longer.
Should I close old credit cards
Closing old cards can reduce average age and available credit; consider downgrading instead if fees are the issue.
How many credit cards are optimal
There’s no perfect number. Maintain what you can manage, keep utilization low, and avoid unnecessary new accounts.
Do joint accounts merge credit files
Files don’t merge, but joint activity can affect both people’s scores.
Will paying off collections boost my score
Paid collections are better than unpaid. Impact varies with age and scoring model.
Can newcomers and students build credit quickly
Yes with a secured card, on-time payments, and keeping balances low. Add a simple installment account when possible.
Why do Equifax and TransUnion scores differ
Different data and models. Monitor both when possible and ask lenders which they use.
What’s the best way to consolidate debt
A fixed-rate debt consolidation loan can lower utilization and simplify payments if total cost is lower.
