Your credit score is one of the most important numbers in your financial life — and yet many Canadians have never checked theirs. Whether you're applying for a mortgage, renting an apartment, or signing up for a new credit card, lenders and landlords use this three-digit number to decide how much they trust you with borrowed money.
In Canada, credit scores range from 300 to 900. The higher your score, the more likely you are to qualify for credit at favourable interest rates. But what exactly counts as a "good" score? And what can you do if yours isn't where you want it to be?
This guide breaks down Canadian credit score ranges, the factors that affect your number, and practical steps you can take to build and maintain strong credit.
What is a credit score
A credit score is a three-digit number that represents your creditworthiness — essentially, how likely you are to repay borrowed money on time. In Canada, scores range from 300 to 900 and are calculated by credit bureaus using information from your credit report.
Lenders, landlords, and sometimes employers use your credit score to assess financial risk. A higher score signals that you've historically managed credit responsibly, which can make it easier to qualify for loans, mortgages, and credit cards — often at lower interest rates.
Your credit score isn't static. It changes over time based on your financial behaviour, which means you have the power to improve it.
Credit score ranges in Canada
Canadian credit scores fall into five general tiers. Here's what each range typically means for your ability to borrow:
Excellent (760–900): You're in the top tier. Lenders consider you very low risk, and you'll likely qualify for the most favourable interest rates and credit products available.
Very good (725–759): You're above average and should have little trouble getting approved for most credit products at competitive rates.
Good (660–724): You meet the threshold most lenders look for. You'll generally qualify for standard credit products, though you may not always get the lowest rates.
Fair (560–659): You may still be approved for credit, but with higher interest rates or stricter conditions. Some lenders may require a co-signer or additional security.
Poor (300–559): Borrowing becomes difficult. You may be limited to secured credit cards or specialty lending products, and interest rates will be significantly higher.
Most lenders in Canada consider a score of 660 or above to be "good." If your score is below that, there are concrete steps you can take to improve it — and we'll cover those later in this article.
Equifax vs. TransUnion — why your scores can differ
Canada has two major credit bureaus: Equifax and TransUnion. Both collect information about your credit history and calculate a score, but they don't always arrive at the same number.
There are a few reasons your scores may differ between the two:
Different data sources. Not all lenders and creditors report to both bureaus. Your credit card issuer might report to Equifax but not TransUnion, or vice versa. This means each bureau may have a slightly different picture of your credit history.
Different scoring models. Equifax and TransUnion use their own proprietary algorithms to calculate scores. Even with the same data, different weighting formulas can produce different results.
Different reporting timelines. Creditors may report updates to each bureau at different times during the month, which can cause temporary discrepancies.
When a lender checks your credit, they typically pull your report from one bureau — not both. Which bureau they use varies by institution and province. This is why it's a good idea to check your score with both Equifax and TransUnion to get a complete picture.
The five factors that affect your credit score
Credit bureaus weigh five main factors when calculating your score. Understanding each one can help you make informed decisions about how you manage credit.
Payment history (~35%)
This is the single largest factor. It tracks whether you've paid your bills on time — including credit cards, loans, and lines of credit. Late payments, missed payments, and defaults can significantly drag your score down. Even one late payment can leave a mark on your report for several years.
Credit utilisation (~30%)
Credit utilisation measures how much of your available credit you're currently using. If you have a credit card with a $10,000 limit and a $3,000 balance, your utilisation is 30%. Keeping this ratio low — generally below 30% — signals to lenders that you're not overly reliant on borrowed money.
Length of credit history (~15%)
This factor looks at how long you've had credit accounts open. A longer history gives bureaus more data to assess your behaviour, which generally works in your favour. Closing your oldest credit account can shorten your average credit age and potentially lower your score.
Credit mix (~10%)
Having a variety of credit types — such as a credit card, a car loan, and a line of credit — shows that you can manage different forms of debt. This doesn't mean you should take on debt you don't need, but a healthy mix can give your score a modest lift.
New credit inquiries (~10%)
Each time you apply for credit and a lender checks your report, it counts as a hard inquiry (more on this below). Multiple hard inquiries in a short period can suggest financial stress and may lower your score temporarily.
Hard vs. soft inquiries
Not all credit checks are equal. There are two types of inquiries, and they affect your score differently.
Hard inquiries
A hard inquiry happens when a lender or creditor pulls your credit report as part of a formal application — for a credit card, mortgage, car loan, or line of credit, for example. Hard inquiries can lower your score by a few points and remain on your report for some time. At Equifax, hard inquiries stay on your report for 3 years; at TransUnion, they can remain for up to 6 years.
Soft inquiries
A soft inquiry occurs when your credit is checked for non-lending purposes. Common examples include checking your own score, background checks by employers, or pre-approved credit offers. Soft inquiries do not affect your score at all.
The rate-shopping window
If you're comparing mortgage or auto loan rates from multiple lenders, you don't need to worry about each application counting as a separate hit. Credit scoring models recognise that shopping for the most favourable rate is responsible behaviour. Multiple inquiries for the same type of loan within a 14 to 45-day window (depending on the scoring model) are typically grouped and counted as a single inquiry.
This rate-shopping protection does not apply to credit cards. Applying for several credit cards in a short period will result in multiple hard inquiries, each potentially lowering your score. If you're planning to apply for a major loan like a mortgage, it's wise to avoid opening new credit card accounts in the months beforehand.
How to build and maintain a good credit score
Improving your credit score takes time, but the steps are straightforward. Here are some effective strategies:
Pay on time, every time. Set up automatic payments or calendar reminders to avoid missing due dates. Payment history carries the most weight, so consistency matters more than anything else.
Keep your credit utilisation below 30%. Try not to carry balances that exceed 30% of your total available credit. If possible, aim for even lower — utilisation under 10% is considered ideal by most scoring models.
Keep old accounts open. Even if you don't use a credit card regularly, keeping it open contributes to your length of credit history. Consider making a small recurring purchase on older cards to keep them active.
Diversify your credit. Over time, having a mix of credit types — such as a credit card and an installment loan — can help. Don't take on debt you don't need, but be aware that variety can benefit your score.
Limit new credit applications. Each application triggers a hard inquiry. Apply for new credit only when you genuinely need it, and space out applications when possible.
Check your credit report regularly. Errors on your credit report — such as accounts you didn't open or incorrect balances — can unfairly lower your score. Review your report at least once a year and dispute any inaccuracies you find.
How to check your credit score in Canada
Both Equifax and TransUnion allow Canadians to check their credit scores for free through their online portals. Equifax offers free monthly score access through its consumer platform, and TransUnion provides a similar service.
Checking your own credit score is always a soft inquiry — it will not affect your score in any way. There's no downside to checking regularly, and doing so helps you catch errors, spot signs of identity fraud, and track your progress over time.
You can also access your full credit report (which includes detailed account information, not the score alone) by mail at no cost. Under Canadian law, credit bureaus are required to provide your report when you request it.
Building and maintaining a good credit score is a practical, ongoing habit that pays off across many areas of your financial life. It doesn't require perfection — it requires consistency. Pay your bills on time, keep your balances manageable, and check your report regularly. Over time, those habits add up.