Your credit score is a three-digit number that quietly shapes your financial life — loan approvals, interest rates, even some rental applications. It’s less mysterious than it seems. Here’s how it works in Canada.
Who Keeps Score: Equifax and TransUnion
Canada has two credit bureaus: Equifax and TransUnion. Lenders report your borrowing behaviour to one or both, and each calculates its own score for you — so your two scores can differ slightly. Both use a 300–900 scale; higher is better.
What the Ranges Mean
Lenders set their own cutoffs, but the generally cited bands in Canada are:
- 760–900: Excellent — best rates, easiest approvals.
- 725–759: Very good — strong position with most lenders.
- 660–724: Good — approved for most products, though not always at the best rates.
- 600–659: Fair — approvals get harder; rates get worse.
- 300–599: Poor — limited options; rebuilding needed.
Treat these as orientation, not law — individual lenders weigh factors differently.
The 5 Factors That Move Your Score
- Payment history (~35%): paying on time, every time, matters most. One missed payment can linger for years.
- Credit utilization (~30%): how much of your available credit you’re using. Staying well under 30% of your limits signals control.
- Length of credit history (~15%): older accounts help. Think twice before closing your oldest card.
- Credit mix (~10%): responsibly handling different types (card, line of credit) helps modestly.
- New inquiries (~10%): several applications in a short window can ding you — rate-shop within a focused period instead.
How to Check Your Report Free in Canada
You’re entitled to a free copy of your credit report from both bureaus (by mail, and Equifax also offers online access). For ongoing monitoring, free services like Borrowell (Equifax data) and Credit Karma (TransUnion data) show your score at no cost. Check your full report at least yearly — errors are more common than people think, and disputing them is free.
The #1 Beginner Mistake
Maxing out a card and paying only the minimum. It tanks your utilization ratio and piles on interest at ~20%+. If you take one thing from this guide: keep balances low and pay on time. Everything else is optimization.
The Bottom Line
A good credit score isn’t built with tricks — it’s built with two habits repeated for years: pay on time, keep balances low. Start there and the number follows.
Checked October 2026. Score bands and bureau services change — confirm current details with Equifax and TransUnion. General money education only — not financial advice; see our disclaimer.