Credit Scores, Reports and Payment History in Canada

How Canadian credit scores work

Canadian credit scores generally range from 300 to 900. They are calculated from information in a credit report and may differ by bureau, lender, scoring model, and date. A higher score generally indicates lower perceived lending risk, but no score guarantees approval or a particular rate.

Why credit history matters

• Lenders may use reports and scores when deciding whether to offer credit and on what terms.
• Landlords or service providers may request credit information where permitted and with required notice or consent.
• Payment history, amounts owed, account age, credit mix, and recent applications may affect a score, but proprietary formulas are not publicly disclosed.

Equifax and TransUnion

Canada has two main credit bureaus: Equifax and TransUnion. Their files may differ because creditors do not always report to both bureaus at the same time.

Payment habits and revolving balances

Pay at least the required minimum by the due date whenever possible. Paying a credit-card statement balance in full usually avoids purchase interest. Keep revolving balances manageable and avoid being close to or over account limits.

Practical reminders

• Set automatic payments for at least the minimum amount when appropriate.
• Use calendar reminders before due dates.
• Contact a creditor early if you cannot make a payment.
• Apply for new credit selectively rather than submitting many applications in a short period.

Building credit as a newcomer

Canadian credit files are generally built from activity reported in Canada. A secured credit card or newcomer product may help establish history, but verify fees, reporting practices, and repayment terms before applying.