What is a good credit score in Canada?

Credit scores in Canada range from 300 to 900. A score of 680+ is generally considered good and qualifies for A-lender mortgage rates. A score of 760+ is excellent and gets the best available rates. The average Canadian credit score is approximately 680. Below 680, your mortgage and lending options become progressively more limited and expensive.

How is my credit score calculated?

Your credit score is calculated based on five weighted factors: payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). The exact algorithms are proprietary to Equifax and TransUnion, but these weights are consistent across both bureaus. Payment history and utilization together account for 65% of your score.

Why is my Equifax score different from my TransUnion score?

Equifax and TransUnion scores often differ by 10–50 points because: not all creditors report to both bureaus, there may be timing differences in when data is updated, each bureau uses slightly different scoring models, and errors may exist on one report but not the other. Mortgage lenders typically pull both reports and use the lower score.

Does checking my credit score lower it?

No — checking your own credit score is a "soft inquiry" and does not affect your score. Hard inquiries (when a lender checks your credit as part of a loan application) do have a small temporary impact (5–10 points) and stay on your file for 3 years. Multiple mortgage inquiries within a 14–45 day window are typically counted as a single inquiry for scoring purposes.

How often is my credit score updated?

Creditors report to Equifax and TransUnion monthly, usually after your statement date. Your score is recalculated each time new information is received. A change in your credit behaviour (e.g., paying down a balance) typically takes 30–60 days to be reflected in your score.

How Credit Scores Are Calculated in Canada: Equifax and TransUnion Explained

Your credit score is a three-digit number that summarizes your creditworthiness. In Canada, two credit bureaus — Equifax and TransUnion — calculate and maintain your score. Here’s exactly how it works.

The two credit bureaus

Feature	Equifax	TransUnion
Headquarters	Atlanta, GA (Canadian operations in Toronto)	Chicago, IL (Canadian operations in Burlington, ON)
Score name	Equifax Risk Score (Beacon)	CreditVision Risk Score
Score range	300–900	300–900
Primary scoring model	FICO-based	VantageScore and FICO-based
Report format	Different layout than TransUnion	Different layout than Equifax
Free score access	Equifax Canada (mail or online — $)	TransUnion (mail — free report, score costs extra)
Used by mortgage lenders	Yes — most lenders pull Equifax	Yes — many lenders also pull TransUnion

Which score do mortgage lenders use?

Lender Practice	Details
Dual-bureau pull	Most mortgage lenders pull both Equifax and TransUnion
Score used	Typically the lower of the two scores
Co-borrower	Lower score of both applicants is used for qualification
B-lenders	May be more flexible about which bureau/score they emphasize

The five scoring factors

Factor	Weight	What It Measures
1. Payment history	35%	Whether you pay on time
2. Credit utilization	30%	How much of your available credit you’re using
3. Length of credit history	15%	How long your accounts have been open
4. Credit mix	10%	Variety of credit types (cards, loans, mortgage)
5. New credit inquiries	10%	Recent applications for new credit

Factor 1: Payment history (35%)

The single most important factor. Lenders want to see that you pay your bills on time, every time.

Payment Behaviour	Impact on Score
All payments on time	Positive — builds score consistently
1 payment 30 days late	–60 to –110 points
1 payment 60 days late	–80 to –130 points
1 payment 90+ days late	–100 to –150 points
Account sent to collections	–50 to –100 points
Bankruptcy filed	–150 to –250 points
Consumer proposal filed	–100 to –200 points

What counts as a payment: Mortgages, credit cards, lines of credit, car loans, personal loans, cell phone bills (if reported), utilities (if sent to collections). Not all creditors report positive payment history — but they almost always report negatives.

Factor 2: Credit utilization (30%)

Credit utilization is the ratio of your credit card balances to your credit limits.

Utilization Level	Impact	Example ($10,000 limit)
0%–9%	Best for score	$0–$900 balance
10%–29%	Good	$1,000–$2,900 balance
30%–49%	Neutral to slightly negative	$3,000–$4,900 balance
50%–74%	Negative	$5,000–$7,400 balance
75%–100%	Very negative	$7,500–$10,000 balance
>100% (over-limit)	Severely negative	Over $10,000

Important nuances:

Utilization is calculated per card AND as a total across all cards
The balance reported is typically your statement balance, not your current balance
Even if you pay in full each month, a high statement balance hurts your score
Strategy: Pay down balance before statement date, not just before due date

Factor 3: Length of credit history (15%)

Metric	What It Measures	Good Benchmark
Average age of accounts	How long all your accounts have been open on average	7+ years is strong
Oldest account age	How long your oldest credit account has been open	10+ years is excellent
Newest account age	How recently you opened an account	Recent openings lower the average

Why closing old cards hurts: When you close your oldest credit card, your average account age drops and your total available credit decreases (raising utilization). Keep old accounts open, even if rarely used.

Factor 4: Credit mix (10%)

Credit Type	Category	Counts As
Credit card	Revolving	✓
Line of credit	Revolving	✓
HELOC	Revolving	✓
Car loan	Installment	✓
Personal loan	Installment	✓
Student loan	Installment	✓
Mortgage	Installment	✓
Cell phone contract	Other	Sometimes reported

A healthy mix of 3–5 different credit types is ideal. Having only credit cards or only installment loans limits your score potential.

Factor 5: New credit inquiries (10%)

Inquiry Type	Impact	Duration on Report
Hard inquiry (lender checks for approval)	–5 to –10 points per inquiry	3 years (but impact fades after 12 months)
Soft inquiry (you check your own score)	No impact	Not visible to lenders
Pre-approval check	Usually soft (verify with lender)	No impact
Rate shopping window	Multiple mortgage inquiries within 14–45 days count as one	Treated as single inquiry

Score ranges and what they mean

Score Range	Rating	% of Canadians	Mortgage Implications
800–900	Exceptional	~20%	Best rates; instant approvals; premium products
760–799	Excellent	~15%	Near-best rates; strong negotiating position
725–759	Very good	~15%	All A-lender products available
680–724	Good	~15%	A-lender approved; standard pricing
640–679	Fair	~12%	Some A-lender access; mostly B-lender
600–639	Below average	~10%	B-lender only
550–599	Poor	~7%	Limited B-lender; high rates
300–549	Very poor	~6%	Private lenders; rebuilding required

What’s on your credit report

Your credit report contains more than just a score. Lenders review the full report.

Information categories

Section	What It Contains
Personal information	Name, address, date of birth, SIN (last digits), employer
Credit accounts	Every credit account — type, opened date, credit limit, balance, payment history
Payment ratings	R-ratings (R0 to R9) for revolving credit; I-ratings for installment
Public records	Bankruptcies, consumer proposals, judgments, liens
Inquiries	Every hard and soft inquiry for the last 3–6 years
Collections	Accounts sent to third-party collectors
Banking information	NSF cheques, closed accounts due to fraud or misuse

R-ratings explained

Rating	Meaning
R0	Too new to rate / approved but not used
R1	Pays as agreed within 30 days — best
R2	31–59 days late
R3	60–89 days late
R4	90–119 days late
R5	120+ days late but not yet a write-off
R7	Consumer proposal or debt management plan
R8	Repossession
R9	Bad debt / write-off / bankruptcy

Mortgage lenders want to see R1 on all active accounts. Even a single R2 or R3 requires explanation and may affect approval.

How to check your credit score and report

Free options

Method	What You Get	Cost	Notes
Equifax by mail	Full credit report (no score)	Free	Request via equifax.ca; takes 5–10 business days
TransUnion by mail	Full credit report (no score)	Free	Request via transunion.ca; takes 5–10 business days
Borrowell	Equifax score + report	Free	Updated weekly; ad-supported
Credit Karma	TransUnion score + report	Free	Updated weekly; ad-supported
Your bank’s app	Score (varies by partner)	Free	Many Canadian banks now show scores in app

Paid options

Method	What You Get	Cost
Equifax Complete (online)	Full report + score + monitoring	$19.95/month
TransUnion (online)	Full report + score	$8–$28/month
Equifax single report + score	One-time report	$23.95

Before applying for a mortgage

Step	Why
Check both Equifax and TransUnion reports	Lenders pull both; know what they’ll see
Review for errors	1 in 4 Canadians has at least one error on their report
Dispute any inaccuracies	Errors can lower your score by 50–100+ points
Check 3–6 months before applying	Gives time to fix issues before the lender pulls credit

Common credit report errors

Error Type	How Common	Impact	How to Fix
Wrong account (not yours)	Common, especially with common names	Can lower score significantly	Dispute with bureau (30-day resolution)
Incorrect balance	Moderate	Inflates utilization	Dispute with bureau or contact creditor
Duplicate account	Occasional	Inflates debt count	Dispute with bureau
Paid account showing as unpaid	Common	Prevents score improvement	Contact creditor for correction letter
Wrong personal information	Very common	Usually no score impact	Update via bureau website or mail
Identity theft / fraudulent accounts	Growing risk	Severe score damage	File fraud alert + police report; dispute accounts

How to dispute an error

Step	Action	Timeline
1	Identify the error on your report	—
2	Gather supporting documents (statements, letters)	—
3	Submit dispute online (Equifax/TransUnion portal) or by mail	Day 1
4	Bureau contacts the creditor for verification	30 days
5	Bureau updates your report if error is confirmed	30–45 days
6	Verify correction on next report pull	Day 45–60