Credit score Canada: quick answer
A Canadian credit score is usually a three-digit number between 300 and 900. Higher is generally better, but lenders choose their own approval and pricing criteria. Equifax, TransUnion, and lenders can use different scoring models, so you may see more than one valid score.
- Payment history is typically the most important scoring factor.
- Balances and credit utilization matter; FCAC suggests trying to use less than 30% of your total available credit.
- Account age, recent credit applications, credit mix, collections, and other report information can also affect a score.
- Checking your own credit report or score does not lower your score.
What is a credit score in Canada?
A credit score in Canada summarizes information from your credit report into a three-digit risk indicator. Lenders may use a score together with income, debt, affordability, security, and their own internal rules when deciding whether to offer credit and what rate or limit to provide.
Canada’s two main credit bureaus are Equifax and TransUnion. Your files may contain different information, and different scoring models can produce different numbers from the same general credit history. That is why the score in a banking app may not exactly match the score used for a mortgage, car loan, or credit-card application.
See the Financial Consumer Agency of Canada credit-score basics →
Canadian Credit Score Range: 300 to 900
Credit scores in Canada usually run from 300 to 900. A higher score generally indicates lower credit risk. There is no single official Canada-wide table that forces every lender to use the same labels or cutoffs, so treat consumer score bands as a guide rather than an approval rule.
300–559: lower range
Borrowing can be more difficult or expensive. Review your reports for errors and focus on payment history, balances, and unresolved negative items.
560–659: developing range
Some lenders may approve credit, but pricing and limits can be less favourable. Other financial information can materially affect the decision.
660–759: stronger range
Many consumer guides describe this area as good to very good, but each lender decides which scores and other criteria meet its requirements.
760–900: highest range
A high score can support access to competitive credit, but it still does not guarantee approval, a specific rate, or a particular credit limit.
Important: The ranges above are practical consumer bands, not universal lender cutoffs. TransUnion notes that each lender decides what it considers good or poor risk.
What Affects Your Credit Score in Canada?
Credit bureaus and lenders do not publish one universal formula or exact percentage weighting for every Canadian score. The following factors are consistently identified by FCAC and TransUnion.
1. Payment history
Usually the most important factor
Paying accounts on time supports a stronger credit history. Missed or delinquent payments can hurt a score, and the effect depends on the rest of your file and the scoring model.
2. Balances and credit utilization
Credit utilization compares revolving balances with available limits. FCAC recommends trying to use less than 30% of your total available credit and avoiding going over your limits. Lower balances can help, but there is no guaranteed point increase.
3. Length and stability of credit history
Longer-established accounts can help demonstrate how you manage credit over time. Before closing an older account, consider annual fees, your available credit, and how closure could affect utilization and account history.
4. Recent applications and new accounts
Hard inquiries can affect a score. Applying for several credit products close together may also signal higher risk. Checking your own report is a soft inquiry and does not lower your score.
5. Credit mix and negative report information
Responsibly managing different types of credit can help your profile. Collections, insolvency information, accounts over limit, and other negative report information can also affect a score. Exact impact varies by file and scoring model.
FCAC: Improving your credit score · TransUnion Canada: How credit scores work
Credit Report Payment Codes and R-Ratings
Canadian credit reports may use account-type and payment-status codes, including R codes for revolving credit. These codes describe account status and payment history; the exact layout and information shown can differ by bureau and report version.
| Rating | Meaning | Impact |
|---|---|---|
| R1 | Pays within 30 days of due date. | Excellent |
| R2 | Pays in 30-60 days. | Warning |
| R3 | Pays in 60-90 days. | Negative |
| R4 - R8 | Increasing severity of delinquency / repossession. | Severe |
| R9 | Bad debt, collection, or bankruptcy. | Worst |
How to Build Credit from Scratch
If you are new to Canada, a student, or have a "thin file," you might not have a score at all. You cannot have a credit score without credit history. Here is the professional roadmap to building it:
Open a Secured Credit Card
Unlike a standard card, a secured card requires a deposit (e.g., $500). This deposit acts as your credit limit. The deposit reduces the provider’s risk, but approval is still subject to identity, eligibility, and issuer requirements. Use the card carefully and pay the statement balance on time.
Report Rent Payments
Some paid services may report rent-payment information to a credit bureau. Confirm which bureau receives the data, the fees involved, how missed payments are handled, and whether the service fits your situation.
Keep Accounts Open
Before closing an older account, consider how it may affect available credit, utilization, fees, and account age. A no-fee product change may be an option, but confirm the issuer’s terms.