Canada’s credit score scale runs from 300 to 900 — which is 50 points higher at the top than the US scale. That difference is worth knowing about: you’ll generally need a score above 760 to get the best mortgage rates and premium credit cards here, while a 740 might count as “excellent” south of the border. Here’s what each range means for your financial life, where the average Canadian falls, and how to move up.
Canada’s Credit Score Scale at a Glance
| Score Range | Rating | What It Signals to Lenders |
|---|---|---|
| 760–900 | Excellent | Lowest rates, instant approvals, best rewards products |
| 725–759 | Very Good | Near-best rates, approvals for most premium products |
| 660–724 | Good | Standard rates, approval for most mainstream products |
| 560–659 | Fair | Higher rates, limited product selection |
| 300–559 | Poor | Very limited — secured products and alternative lenders only |
Both Equifax and TransUnion use this 300–900 scale in Canada, though their specific scoring models differ slightly. It’s normal to have a score that differs by 10–30 points between the two bureaus.
What the Average Canadian Credit Score Actually Is (And What It Costs Them)
According to Borrowell’s consumer credit data, the average Canadian credit score is around 672. That puts most Canadians in the “Good” range, though close to the “Fair” boundary. In practice, this means the average Canadian can get approved for most standard credit products but isn’t qualifying for the lowest interest rates available.
Key Takeaway
The average Canadian credit score is 672 — solidly ‘Good,’ but not ‘Very Good.’ Moving from 672 to 725 is achievable in 12–18 months and can meaningfully reduce the interest rate on a car loan, personal loan, or mortgage.
Scores also vary a lot by age group. Canadians between 18 and 25 typically start in the 550–630 range, mainly because their credit files are still thin — there just hasn’t been enough time for payment history to build up. By the mid-40s, the average climbs into the 700s. That’s mostly a reflection of time and credit history length rather than anything specific about how older Canadians manage their finances.
What Each Score Range Actually Gets You
Excellent (760–900): The Range That Unlocks the Best Rates
At 760 and above, you have access to the best financial products Canada offers. That includes insured and uninsured mortgages at the lowest fixed and variable rates, approval for top-tier cashback and travel rewards credit cards, no security deposits on most rental applications, and in some provinces, lower auto insurance premiums.
Lenders view this range as essentially zero risk, which gives you real negotiating power on rates.
Very Good (725–759): Near-Best Rates on Almost Everything
Most financial products are available at near-best rates. You may be declined for the most exclusive premium credit cards (some require 760+) but will be approved for most tier-two rewards cards. Mortgage lenders will typically approve you quickly, with a rate that might be 0.1–0.3% higher than the absolute best rate offered to 800+ applicants.
This range is functionally excellent for most Canadians’ needs.
Good (660–724): Where Most Canadians Are — and Where the Gap Starts
The “good” range is where most Canadians live, and it’s sufficient for everyday financial needs. You’ll qualify for most credit cards, car loans, and mortgages at standard rates. The gap between a 670 and a 750 often translates to 0.5–1.5% higher interest on a mortgage — meaningful money over a 25-year amortization, but not an insurmountable barrier.
Key Takeaway
On a $400,000 mortgage, a 1% rate difference costs roughly $200 per month — or $60,000 over a 25-year amortization. Moving from 670 to 725+ before applying is one of the highest-return financial moves available to most Canadians.
Fair (560–659): Higher Rates, Harder Approvals
This is the range where improvement pays off most in dollar terms. You’ll face higher APRs on credit cards and personal loans — often 5–10 percentage points higher than what someone at 720 would pay. Mortgage approvals are harder and may require CMHC insurance even with a larger down payment.
Secured credit cards are widely available and remain the primary credit-building tool at this range. Many landlords will still approve applications here, sometimes with a larger deposit or co-signer.
Poor (300–559): Mainstream Lenders Will Decline You
At this range, most mainstream unsecured lenders will decline applications. Your main options are secured credit cards, secured loans backed by collateral, and alternative lenders at significantly higher rates. Renting an apartment may require a co-signer or substantially larger deposit.
This range typically results from missed payments, collections, or bankruptcy — and requires an active rebuilding strategy. See our guide on how to build credit in Canada for a step-by-step plan.
Equifax vs. TransUnion — Why Your Two Scores May Differ
Canada has two major credit bureaus — Equifax and TransUnion — and not all lenders report to both. A 10–30 point difference between your two scores is normal and simply reflects that different lenders have reported different information to each bureau.
A larger gap (40+ points) is worth investigating: it may mean a negative item is appearing on one bureau that isn’t on the other, or that an account is only reporting to one bureau. Check both reports at no cost: equifax.ca and transunion.ca both offer free annual reports, and Borrowell (Equifax-based) and Credit Karma (TransUnion-based) offer free ongoing monitoring.
If you’re about to apply for a mortgage or a major loan, ask the lender which bureau they pull from. If one of your scores is lower than the other, that gives you a chance to address the issues on that specific file before you apply.
How Often Does Your Credit Score Update?
Your score gets recalculated every time a lender reports new information to the bureau, which usually happens monthly around your statement closing date. So your score can shift once a month, and sometimes more than once if you have multiple accounts reporting at different times.
Key Takeaway
If you’re trying to hit a specific score before applying for a mortgage, make changes at least 60 days in advance. Paying down a balance today won’t show up until your statement closes and the lender reports — usually 2–6 weeks later.
What Does NOT Affect Your Credit Score
There are a number of common misconceptions about what affects your score. These have no impact whatsoever:
- Your income — lenders may consider income for affordability, but it’s not a scoring factor
- Your savings account balance — deposit accounts don’t appear on credit reports
- Checking your own score — soft inquiries never affect your score
- Your debit card use — debit transactions don’t appear on credit reports
- Where you live — postal code or province has no direct effect
- Your age or marital status — these aren’t scoring factors in Canada
- Your employer or job title — employment information may appear on your report but isn’t scored
How to Move Up a Tier
Poor to Fair generally takes 12–24 months of consistent on-time payments, along with addressing negative items through disputes or settlements.
Fair to Good can happen in 6–12 months once utilization is under control — this tends to be the fastest improvement most people see.
Good to Very Good requires 1–2 years of credit history lengthening and, in some cases, adding a different type of credit product to your mix.
Excellent scores (760+) generally need 5+ years of a clean, active credit file to reach.
For the full plan, see how to build credit in Canada and realistic timelines for each starting point.
Frequently Asked Questions
What is considered a good credit score in Canada?
On Canada’s 300–900 scale: 660–724 is “good,” 725–759 is “very good,” and 760+ is “excellent.” A score of 660 or above qualifies you for most mainstream financial products at standard rates. For the best mortgage and loan rates, aim for 725+.
What is the average credit score in Canada?
The average Canadian credit score is approximately 672, according to Borrowell’s consumer data — placing most Canadians in the “Good” range. The typical Canadian qualifies for most standard products but isn’t accessing the lowest available interest rates.
Is 700 a good credit score in Canada?
Yes — 700 is solidly within the “Good” range (660–724) and qualifies you for most credit products at standard rates. Getting up to 725+ would unlock noticeably better terms on mortgages and loans, which is worth working toward if you’re planning any major borrowing in the next year or two.
What credit score do you need for a mortgage in Canada?
Most federally regulated lenders require a minimum of 620–640 for an insured mortgage (less than 20% down). For an uninsured mortgage with 20%+ down, most major banks look for 680+. For the best rates, you’ll want 760+.
Is 650 a good credit score in Canada?
650 falls in the “Fair” range (560–659). You can still get approved for a number of products, but the interest rates will be higher than what someone in the “Good” range would pay. With 12 months of focused effort — consistent on-time payments and keeping utilization low — moving into the “Good” range is realistic, and the interest savings going forward can be significant.
This article is for informational purposes only and does not constitute financial advice. Credit score ranges and lender requirements vary. Always verify current terms with lenders directly before making financial decisions.
