Credit Score Ranges in Canada: What Your Score Means and What Counts as Good

Credit scores in Canada run on a scale from 300 to 900. The Financial Consumer Agency of Canada (FCAC) says “Scores usually range from 300 to 900. A higher score is better.” Where you fall on that scale affects whether you’re approved for a card, loan or mortgage and the rate you’re offered. This page sets out the ranges, what counts as a good score, what each range means to a lender and how to move up. It is one of our credit score guides.

The ranges

Equifax Canada describes the ranges this way: “Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.” It calls scores generally below 560 the “poor” range.

The last column follows Equifax’s own wording: “Lenders generally see those with credit scores 660 and up as acceptable or lower-risk borrowers. Those with credit scores below 660 may be less likely to qualify for better loan terms. Those with lower scores who fall into the “poor” credit range (generally below 560) are more likely to have difficulty getting credit or qualifying for better loan terms.” Source: Equifax, What is a good credit score?

What counts as a good credit score

By Equifax’s description, a good score is 660 or higher, the point at which lenders generally see a borrower as acceptable or lower-risk. No single cut-off guarantees an approval, though. Equifax notes “there’s no “magic number” to reach when it comes to receiving better loan rates and terms,” and a score “is only one of several pieces of information an organization will typically use to determine your creditworthiness.” Lenders also look at income, existing debts and, for a mortgage, the down payment.

What each range means in practice

• Excellent and very good. Most cards, loans and mortgages are open to you, including premium cards with their own income requirements. The score is rarely what holds an application back.
• Good. Approval for mainstream products is likely, though the best advertised rates on larger loans may need a higher score.
• Fair. Some unsecured cards and loans are still available, often at higher rates or lower limits. A secured credit card or one of the easiest credit cards to get is the usual route to rebuilding.
• Poor. Unsecured credit is hard to get. The score usually reflects missed payments, collections or an insolvency; rebuilding credit after bankruptcy covers the path back.

Equifax, TransUnion and FICO scores

Canada has two credit bureaus, Equifax and TransUnion, and each calculates its own score from its own report. Both use the same broad 300 to 900 scale, but the two numbers are rarely identical because lenders don’t all report to both, the reports update at different times and the models differ. TransUnion describes its score bands in its own terms, so the Equifax ranges above don’t map exactly onto a TransUnion score. Equifax vs TransUnion compares the two.

FICO, the scoring company that dominates in the United States, also sells scores in Canada, and some lenders use FICO-based models. Equifax notes “There are many different credit score models used today by lenders and other organizations.” The scores you see in free apps are usually a bureau’s own model. That’s why FCAC says “The credit score you see may be different than the score a lender sees. This is because a lender may give more weight to certain information when they calculate your score.”

Scores needed for specific products

Lenders set their own minimums, and most don’t publish them. The guides that cover each product in detail:

• Mortgages: the credit score needed for a mortgage covers insured and uninsured mortgages, and how your credit score affects your mortgage rate covers pricing.
• Car loans: the credit score you need for a car loan by lender type, with rates by score in car loans in Canada.
• Credit cards: premium cards often list an income requirement rather than a score; our credit card comparison shows each card’s requirement, and cards for bad credit cover the lower ranges.

How Canadian scores compare

No bureau publishes an official national average. Borrowell, which shows its members their Equifax score, reports an average of 679 among its members; the average credit score in Canada covers the published figures by age group and city and where they come from.

Moving up a range

The factors that move a score are covered in how credit scores are calculated. In short: pay every account on time (a missed payment stays on your report for years), keep balances low against your limits (credit utilization explains why), space out applications, and let your accounts age. How to improve your credit score ranks the actions by how quickly they work; with no history at all, the starting point is how to build credit from scratch.

If your score fell into a lower range recently, why did my credit score drop helps find the cause.

To see which range your own number falls in, how to check your credit score for free lists the free routes.