How credit scores work in Canada
Your credit score is a number lenders use to gauge how likely you are to repay. In Canada it's calculated by two bureaus — Equifax and TransUnion — and it quietly affects the rates you're offered on cards, loans and mortgages.
The range
Canadian scores run from 300 to 900. Roughly: 660+ is generally considered good, 725+ very good, and 760+ excellent — though every lender sets its own cutoffs.
Keep reading: Debt payoff calculator. For the official rules, see Financial Consumer Agency of Canada — Credit reports and scores.
What actually moves it
- Payment history — paying on time is the single biggest factor.
- Credit utilization — how much of your available credit you use; keeping it under ~30% helps.
- Age of credit — longer histories help, so think twice before closing your oldest card.
- New applications — several hard inquiries in a short window can ding your score.
- Credit mix — a healthy blend of credit types is a minor positive.
Check it for free
You can see your report and score for free directly from Equifax and TransUnion, and many Canadian banks and apps now show it at no cost. Checking your own score is a 'soft' inquiry and never lowers it.
Frequently asked
Why are my two scores different?
Lenders don't all report to both bureaus, and each uses its own model, so a gap between your Equifax and TransUnion scores is normal.
How fast can I improve it?
On-time payments and lowering utilization can show up within a couple of billing cycles; building a long history takes years.
Sources
General information for Canadian readers, not individualized financial, tax or investment advice. Figures reflect the date reviewed; confirm current limits and rules with the CRA or a qualified professional before acting.