Canadian credit scores range from 300 to 900. There's no single official cut-off for "good", because every lender sets its own criteria, but as a rough guide a score in the high 600s or above is generally considered good, and scores in the mid-700s and up usually qualify for the best rates.
Approximate score ranges
| Score | Rough rating | What it usually means |
|---|---|---|
| 760–900 | Excellent | Best rates and highest approval odds |
| 725–759 | Very good | Competitive rates on most products |
| 660–724 | Good | Approved by most lenders |
| 560–659 | Fair | Approvals possible, often at higher rates |
| 300–559 | Poor | Mainstream credit is difficult; rebuilding needed |
Remember that you have more than one score. Equifax and TransUnion each calculate their own, lenders may use different scoring models, and mortgage lenders often look at more than just the number.
What affects your score
The bureaus don't publish their exact formulas, but the same factors come up again and again, roughly in this order of importance:
- Payment history. Paying at least the minimum on time, every time, matters most. A single payment 30 or more days late can do noticeable damage.
- Credit utilization. How much of your available revolving credit you're using. Keeping balances under about 30% of your limits is widely recommended, and lower is better.
- Length of credit history. Older accounts help. Closing your oldest card can shorten your history.
- New credit. Several hard inquiries in a short period can signal risk.
- Credit mix. A combination of revolving and instalment credit can help slightly.
Utilization is the fastest lever. Unlike payment history, it's based on your current balances. Paying a card down before the statement date can lift your score within a month or two.
How to improve your score
- Set up automatic minimum payments so you never miss a due date
- Pay balances down, or ask for a credit limit increase, to lower utilization
- Keep old accounts open, especially if they have no annual fee
- Space out applications for new credit
- Check both bureau reports for errors and dispute anything wrong
- If you're building from scratch, a secured credit card used lightly and paid in full builds history
How long improvement takes
Utilization changes show up as soon as lenders report new balances, usually monthly. Recovering from late payments takes longer: their impact fades over time and they drop off entirely after about six years. See how long information stays on your report.
Common myths
- Checking your own score lowers it. False. It's a soft inquiry.
- Your income affects your score. False. Income isn't on your credit report, though lenders consider it separately.
- Carrying a balance builds credit. False. Paying in full each month builds the same history without interest.
- Closing cards always helps. Often the opposite, because it reduces available credit and can shorten your history.
Frequently asked questions
Is 700 a good credit score in Canada?
Yes. A 700 is generally considered good and should qualify you with most lenders, though the best rates often go to scores in the mid-700s and up.
What credit score do I need for a mortgage in Canada?
It varies by lender and whether the mortgage is insured. Many mainstream lenders look for scores in the high 600s or above, alongside your income, debts and down payment.
What is the average credit score in Canada?
Most Canadians have scores in the 600s and 700s. The bureaus publish averages occasionally, and they shift with economic conditions.
Sources
- Financial Consumer Agency of Canada, Credit report and score basics
- Financial Consumer Agency of Canada, Improving your credit score