Your credit score in Canada ranges from 300 to 900 and determines the interest rates you’ll pay on mortgages, credit cards, and loans. Here’s how it works.
Canadian Credit Score Ranges
Both Equifax and TransUnion use the same 300–900 scale:
| Score Range | Rating | What It Means |
|---|---|---|
| 800 – 900 | Excellent | Best rates, instant approvals |
| 720 – 799 | Very Good | Great rates on most products |
| 650 – 719 | Good | Approved for most credit products |
| 600 – 649 | Fair | Higher interest rates, some denials |
| 560 – 599 | Below Average | Limited options, high rates |
| 300 – 559 | Poor | Likely declined, secured products only |
Average Canadian Credit Score
The national average credit score in Canada sits around 680 — solidly in the “good” range but below the 720+ threshold needed for the best mortgage rates. Scores tend to climb with age as people build longer credit histories and reduce their debt loads.
| Demographic | Average Score |
|---|---|
| National average | ~680 |
| Age 18–25 | 620 |
| Age 26–35 | 660 |
| Age 36–45 | 680 |
| Age 46–55 | 700 |
| Age 56–65 | 730 |
| Age 65+ | 750 |
Credit scores tend to improve with age due to longer credit history and more stable finances.
Credit Score by Province
| Province | Average Score |
|---|---|
| British Columbia | 695 |
| Ontario | 685 |
| Alberta | 675 |
| Quebec | 680 |
| Saskatchewan | 670 |
| Manitoba | 665 |
| Nova Scotia | 675 |
| New Brunswick | 670 |
| Newfoundland & Labrador | 665 |
| Prince Edward Island | 670 |
How to Check Your Score (Free)
Checking your own credit score is a soft inquiry and has zero impact on your rating. Borrowell (Equifax) and Credit Karma (TransUnion) are the two most popular free options. Since your scores can differ between bureaus, it’s worth monitoring both.
| Service | Bureau | Cost | Soft Pull? |
|---|---|---|---|
| Borrowell | Equifax | Free | Yes |
| Credit Karma | TransUnion | Free | Yes |
| Equifax (direct) | Equifax | Free (basic) / $19.95+ (full) | Yes |
| TransUnion (direct) | TransUnion | Free by mail / $23.95+ online | Yes |
| Many bank apps | Varies | Free (for customers) | Yes |
Checking your own score is a “soft pull” and does not affect your score.
What Affects Your Credit Score
Your credit score is calculated from five factors, but two of them — payment history and credit utilisation — account for nearly two-thirds of the total. This means the fastest way to improve your score is to never miss a payment and keep your credit card balances below 30% of your limit.
| Factor | Weight | Description |
|---|---|---|
| Payment history | ~35% | On-time payments on all accounts |
| Credit utilization | ~30% | Percentage of available credit used |
| Credit history length | ~15% | Age of oldest and average accounts |
| Credit mix | ~10% | Variety of credit types |
| New credit inquiries | ~10% | Recent hard pulls and new accounts |
Payment History (35%)
| Payment Pattern | Impact |
|---|---|
| Always on time | Very positive |
| 30 days late | Moderate negative (stays 6 years) |
| 60 days late | Significant negative |
| 90+ days late | Severe negative |
| Sent to collections | Very severe negative |
A single 30-day late payment can drop your score by 60-110 points.
Credit Utilization (30%)
| Utilization | Impact | Example ($10,000 limit) |
|---|---|---|
| 0% | Slightly negative (no activity) | $0 balance |
| 1–10% | Best for score | $100 – $1,000 |
| 11–30% | Good | $1,100 – $3,000 |
| 31–50% | Moderate negative | $3,100 – $5,000 |
| 51–75% | Significant negative | $5,100 – $7,500 |
| 76–100% | Very negative | $7,600 – $10,000 |
| Over 100% | Severe negative | Over limit |
How Credit Scores Affect Mortgage Rates
Your credit score directly impacts the mortgage rate you’ll be offered, and the cost difference is enormous over a 25-year amortisation. The spread between excellent credit (800+) and fair credit (650–679) can mean $67,000 or more in additional interest on a $400,000 mortgage. Improving your score before applying is one of the highest-return financial moves you can make.
| Credit Score | Typical Mortgage Rate | Monthly Payment ($400K, 25yr) | Total Interest |
|---|---|---|---|
| 800+ (excellent) | 4.5% | $2,223 | $266,900 |
| 720-799 | 4.7% | $2,268 | $280,400 |
| 680-719 | 5.0% | $2,335 | $300,500 |
| 650-679 | 5.5% | $2,444 | $333,200 |
| 600-649 | 6.0%+ (B lender) | $2,556 | $366,800 |
| Under 600 | 7%+ (private lender) | $2,756 | $426,800 |
The difference between excellent and fair credit can cost $67,000+ in extra interest over 25 years on a $400,000 mortgage.
How to Improve Your Credit Score
Quick Improvements (1-3 Months)
| Action | Expected Impact | Timeline |
|---|---|---|
| Pay down credit card below 30% utilization | +20 to +50 points | 1-2 months |
| Become an authorized user on a good account | +10 to +30 points | 1-2 months |
| Dispute errors on credit report | Varies | 30 days (must respond) |
| Set up automatic minimum payments | Prevents future missed payments | Immediate |
Medium-Term Improvements (3-12 Months)
| Action | Expected Impact | Timeline |
|---|---|---|
| Make all payments on time for 6 months | +30 to +60 points | 6 months |
| Pay down revolving debt consistently | +20 to +50 points | 3-12 months |
| Get a secured credit card (if rebuilding) | +30 to +60 points | 6-12 months |
| Limit hard credit inquiries | Reduces negative impact | Inquiries fade in 3 years |
Long-Term Strategies (1+ Years)
| Action | Expected Impact | Timeline |
|---|---|---|
| Keep old accounts open | Maintains history length | Ongoing |
| Maintain low utilization consistently | Sustained improvement | Ongoing |
| Diversify credit types | +10 to +20 points | 1-2 years |
| Let negative items age off | Significant improvement | 6-7 years |
Negative Marks and How Long They Last
Negative items on your credit report don’t stay forever, but they linger for years. Most derogatory marks — late payments, collections, and judgments — remain for six years in Canada. The good news is that their impact fades over time, especially if you build a strong recent payment history.
| Item | Duration on Report |
|---|---|
| Late payments | 6 years from date of missed payment |
| Collections | 6 years from date of last activity |
| Consumer proposal | 3 years after completion |
| Bankruptcy (first) | 6 years after discharge |
| Bankruptcy (second) | 14 years after discharge |
| Hard inquiry | 3 years (impacts score for ~1 year) |
| Judgments | 6 years |
Equifax vs TransUnion
Canada has two credit bureaus, and not all creditors report to both. This is why your Equifax and TransUnion scores can differ by 10–40 points. Checking both gives you a complete picture of your credit profile and helps you spot reporting errors that might only appear on one bureau’s file.
| Feature | Equifax | TransUnion |
|---|---|---|
| Score range | 300 – 900 | 300 – 900 |
| Free access | Borrowell; mail request | Credit Karma; mail request |
| Report format | Different layout | Different layout |
| Data sources | Slightly different | Slightly different |
| Score may differ | Often 10-40 points different | Often 10-40 points different |
Your scores may differ between bureaus because not all creditors report to both. Check both regularly.
Canadian Credit Score vs US Credit Score
| Feature | Canada | United States |
|---|---|---|
| Score range | 300 – 900 | 300 – 850 (FICO) |
| Bureaus | Equifax, TransUnion | Equifax, TransUnion, Experian |
| Free access right | Yes (by mail, or via free apps) | Yes (annualcreditreport.com) |
| Negative items duration | 6 years (most) | 7 years (most) |
| Bankruptcy duration | 6 years (first) | 7-10 years |
| Hard inquiry duration | 3 years | 2 years |
| SIN/SSN needed | SIN not on report but used to pull | SSN used extensively |
Key Takeaways
- Canadian credit scores range from 300 to 900 — aim for 720+ for the best rates
- The national average is ~680 — “good” but room for improvement
- Payment history (35%) and utilization (30%) are the two biggest factors
- Check free at Borrowell (Equifax) and Credit Karma (TransUnion) — no score impact
- Keep credit utilization under 30% — ideally under 10%
- Poor credit on a $400K mortgage can cost $67,000+ extra in interest
- Negative items last 6 years — but their impact fades over time
- Never miss a payment — a single 30-day late can drop your score 60-110 points
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