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.
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
Credit cards (no-fee)
~660+
Auto loans
~680+
Personal loans
~700+
Mortgages
~720+
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
Payment history
35%
Credit utilization
30%
Credit age
15%
Mix of credit
10%
New credit
10%
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 checksSoft: pre-approvalsHard: new loans/cards
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 dataDifferent modelsTiming differences
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.
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.
