Credit basics
Credit Scores in Canada
Understand what your credit score means, what can affect it, and how to build healthy credit habits.
Start here
Credit scores in 30 seconds
A credit score is a number based on information in your credit report that helps lenders assess credit risk. It is typically a three-digit number; common Canadian consumer scores usually range from 300 to 900, and higher scores generally indicate lower perceived credit risk.
You use credit
Information is reported
Bureaus maintain your report
A model analyzes it
Credit score
Two related ideas
Credit report vs. credit score
Credit report
Your credit information and history. It may include accounts, balances, limits, payment history, inquiries, and certain public-record information.
Credit score
A numerical assessment created by applying a scoring model to information in a credit report.
Credit reporting
Who are Equifax and TransUnion?
Equifax and TransUnion are Canada’s two main consumer credit bureaus. Lenders and other organizations may report information to one or both. Because the information and timing can differ, the bureaus do not necessarily hold identical files.
An illustrative scale
What is a “good” credit score?
Common Canadian consumer credit-score models generally range from 300 to 900. Higher scores generally indicate lower perceived credit risk—but there is no universal Canadian score that guarantees approval, an interest rate, a credit limit, or a mortgage.
Try the credit score scale
Drag the slider to see how scores move across an illustrative range. This is not a calculator, credit assessment, approval prediction, or score-change simulation.
Selected score
Good
This is in a stronger part of the illustrative range, but approval still depends on the lender and application.
Needs improvement
300–599
Fair
600–659
Good
660–724
Very good
725–759
Excellent
760–900
For illustration only. Credit-score classifications are not universal. Credit bureaus, lenders, and scoring models may use different ranges and criteria.
A higher score generally indicates lower perceived credit risk, but a particular score does not guarantee approval or a specific interest rate.
Your credit history
What can affect your credit score?
Payment history
Do you make required payments on time?
Amounts owed
How much debt do you currently owe?
Credit utilization
How much of your available revolving credit are you using?
Length of credit history
How long have you been managing credit?
New credit / inquiries
Have you recently applied for or opened new credit?
Credit mix
What kinds of credit accounts are part of your history?
Different scoring models may weigh these factors differently; their exact formulas are not public.
Available revolving credit
What is credit utilization?
Credit utilization compares a revolving account’s reported balance with its credit limit. Using a large proportion of available credit may affect scoring—even if you pay the balance later.
$10,000 limit · $2,000 reported balance
20%
Illustrative utilization
$10,000 limit · $8,000 reported balance
80%
Illustrative utilization
TransUnion currently suggests keeping account balances below 35% of available credit. That is bureau guidance—not a universal Canadian rule or approval threshold. FCAC currently offers separate general guidance to try to use less than 30% of total credit limits.
Consistency matters
Why payment history matters
Payment due
Pay required amount on time
Positive payment history
Payment due
Miss payment
Late payment may be reported
If you cannot pay an entire credit-card balance, making at least the required minimum payment by its due date is different from missing the payment. But credit-score health and debt health are not identical: paying only minimums can mean interest charges and a much longer repayment period.
Credit checks
Hard checks vs. soft checks
Soft inquiry
Examples include checking your own credit and certain reviews for existing accounts. Soft inquiries do not affect your score.
Hard inquiry
May occur when you apply for certain credit products. Hard inquiries appear on your report and can affect your score.
Checking your own credit report or consumer credit score does not lower your credit score.
A useful distinction
What isn’t part of the score?
TransUnion says personal details such as age, ethnicity, religion, marital status, salary, occupation, and employer information are not factors in its score calculation.
More than one model
Why is my score different depending on where I look?
- Bureaus may receive different information.
- Reporting timing may differ.
- Different scoring models may be used.
- Lender-specific models may serve different lending purposes.
Seeing 780 in a consumer app does not necessarily mean every lender will see or use exactly 780.
No instant fixes
Habits that can support healthy credit
Pay on time
Make required payments by their due dates.
Manage balances
Avoid consistently using a very large portion of available revolving credit.
Apply when needed
Avoid unnecessary repeated applications for new credit.
Build history over time
Responsible credit history takes time.
Keep information accurate
Review your credit reports and dispute errors.
Use credit responsibly
Manage credit carefully rather than accumulating it unnecessarily.
Myth vs. reality
Common credit-score myths
Myth: “Checking my credit lowers my score.”
Reality: Checking your own report or consumer score does not lower it.
Myth: “I need to carry a balance and pay interest to build credit.”
Reality: You do not need to deliberately carry interest-bearing debt. Paying on time and managing credit responsibly matter; paying a card in full also avoids interest.
Myth: “One credit score follows me everywhere.”
Reality: Different bureaus and scoring models can produce different scores.
Myth: “A high score guarantees approval.”
Reality: A lender may also consider income, existing debt, requested credit, affordability, and lender-specific criteria.
Myth: “More credit cards automatically means a better score.”
Reality: Not necessarily. The overall credit profile and how each account is managed matter.
Review both files
How can I check my credit report?
Canadians can access credit-report information from Equifax and TransUnion. Access methods and score availability can change, so use the current FCAC instructions for getting your credit report and score rather than relying on an old process.
Accuracy and identity protection
What should you look for on your credit report?
- Accounts you do not recognize
- Incorrect balances
- Payments incorrectly marked late
- Incorrect personal information
- Unfamiliar inquiries
If information appears wrong, follow the bureau’s and creditor’s dispute or correction process. FCAC explains how to check for errors and fraud.
Available
How to Read Your Credit Report
OpenDifferent records, different periods
How long does information stay on your credit report?
Different types of positive and negative information may remain for different periods. Retention can depend on the information, bureau, province or territory, and applicable rules. Consult current FCAC retention guidance for the details.
Available
How Long Information Stays on Your Credit Report
OpenThe wider application
Your credit score is not the whole lending decision
Your credit score is important. It is not your entire financial profile.
Quick knowledge check
4 questions to lock it in
Your answers stay in this browser session and are not saved or submitted.
Key takeaways
What you should remember
- Your credit report and credit score are not the same thing.
- Common Canadian consumer scores generally range from 300 to 900.
- Higher scores generally indicate lower perceived credit risk.
- There is no universal score that guarantees approval.
- Payment history, utilization, history length, new credit, and credit mix can affect scores.
- Checking your own credit does not lower your score.
- Equifax and TransUnion scores may differ.
- Healthy credit is generally built through consistent responsible behaviour over time.
Related topics
Keep learning
Available
How Does a TFSA Work?
OpenAvailable
RRSP Basics
OpenAvailable
Understanding Compound Growth
OpenAvailable
Understanding Inflation
OpenAvailable
How to Read Your Credit Report
OpenAvailable
How Long Information Stays on Your Credit Report
OpenComing Soon
Credit Cards Explained
Coming Soon
How Credit Card Interest Works
Coming Soon
Loans vs. Lines of Credit
Coming Soon
Understanding Debt-to-Income
Sources & last reviewed
Official references
- Last reviewed
- August 2026
- Primary sources
- Financial Consumer Agency of Canada, TransUnion Canada, and Equifax Canada