How Canadian Credit Scores Work: Equifax vs. TransUnion Guide

Understanding Your Canadian Credit Score

In Canada, credit scores range from 300 to 900 points. Lenders use these scores alongside your Debt-to-Income (DTI) ratio to determine whether you qualify for financing and what interest rate you receive.

The 5 Factors That Calculate Your Score

1. Payment History (35%): Making on-time payments is the single most important factor. Even a single 30-day late payment can drop a good score by 40–80 points.
2. Credit Utilization (30%): The percentage of your available credit limits that you use. Keeping revolving balances below 30% (and ideally below 10%) maximizes points.
3. Credit History Length (15%): How long your trade lines have been open. Avoid closing your oldest credit card!
4. Credit Mix (10%): Having a healthy combination of revolving credit (credit cards/HELOC) and installment credit (car loan, personal loan, mortgage).
5. Hard Inquiries (10%): Applying for multiple new credit cards or loans within a short window. (Checking your own score is a soft check and never hurts your rating).

Score Ranges in Canada

• 760 - 900 (Excellent): Unlocks the lowest tier-1 interest rates from chartered banks.
• 700 - 759 (Good): Qualifies for standard prime loans and mortgages with ease.
• 640 - 699 (Fair): Eligible for most bank products, though some premium discounts may require higher down payments.
• 560 - 639 (Below Average): Requires alternative or B-lenders; interest rates will be higher.
• 300 - 559 (Poor): Best suited for secured cards and credit-builder programs.

Try our Credit Score Simulator to see the exact point impact of paying down cards, requesting limit increases, or correcting errors.