What is a Good Credit Score?

Date Published: April 19, 2023 (Updated March 30, 2026)•8 min read

Key Taleaways

• A credit score of 660 or higher is generally considered good in Canada.

• The national average sits at 760, according to FICO's November 2024 data.

• Scores are calculated using five factors, with payment history carrying the most weight at 35%.

• Most major banks require at least 680 to approve a mortgage at competitive rates.

• Equifax and TransUnion may show you slightly different numbers — and that's completely normal.

• Checking your own credit score is considered a soft inquiry and won't hurt it.

What Is a Good Credit Score in Canada?

In Canada, a credit score of 660 or above is generally considered good. If you've recently checked your score and you're wondering where you stand, that's the benchmark most lenders look at when deciding whether to approve you for credit products like loans, credit cards, and mortgages.

But what exactly is a credit score to begin with? Basically, it's a three-digit figure that falls somewhere between 300 and 900, and it can actually look different depending on which credit bureau is reporting it. That's because Canada has two main credit bureaus, which are Equifax and TransUnion, and each one uses its own scoring model to calculate your score.

So if you see a slightly different number from each one, don't panic. That's normal, and it doesn't mean something is wrong with your credit. What matters more is the range your score falls into and what that range means for your financial options.

Credit Score Ranges in Canada (Equifax & TransUnion)

Both Equifax and TransUnion use a 300 to 900 scale, but they categorize scores slightly differently. Here's a general breakdown of how credit scores are typically grouped in Canada:

*Source: Equifax Canada credit score categories. Note that TransUnion may use slightly different thresholds.

It's worth mentioning that your score can differ between Equifax and TransUnion, and that's completely normal. Each bureau uses its own scoring model, and not all lenders report to both bureaus. So the score you see on one platform might not perfectly match the other.

What Is the Average Canadian Credit Score?

As of November 2024, the average FICO Score for Canadian consumers is 760, which puts most Canadians in the "very good" to "excellent" range. That number is down two points from the previous year's average of 762, reflecting a modest increase in missed payments and rising debt levels across the country. Carrying more debt will generally pull your score downward over time.

If your score is below 760, that doesn't mean you're in trouble. Keep in mind that the FICO average represents a broad snapshot of the entire credit-active population. Other reporting sources, like Borrowell (which surveyed over 3 million of its members in 2026), found a lower average closer to 679, which gives you a sense of how much the number can vary depending on who's being measured and which scoring model is used.

Generally, credit scores tend to climb with age. Younger Canadians often have shorter credit histories and fewer accounts, which naturally means lower scores. As you build credit over time by paying bills consistently and managing different types of credit, your score will typically improve.

How Is a Credit Score Calculated?

Your credit score is built from information in your credit report, and five main factors determine where you land on the scale. Understanding these factors will help you take control of your financial future. Here's how they break down:

Payment history (35%): This is the biggest factor. Paying your bills on time, every time, has the most positive impact on your score. Late or missed payments will damage your credit the fastest, so this is the factor worth watching most closely. Even one missed payment can leave a mark that stays on your report for up to six years.

Credit utilization (30%): This is the percentage of your available credit that you're currently using. If you have a $5,000 credit limit and carry a $2,500 balance, your utilization is 50%. Lenders prefer to see this number below 30%. High utilization signals that you may be relying too heavily on debt, which will negatively impact your score.

Credit history length (15%): The longer your accounts have been open and active, the better. This is why financial experts often recommend keeping older credit accounts open, even if you're not using them regularly.

Credit mix (10%): Having a healthy mix of credit types, like a credit card, a car loan, and a line of credit, shows lenders you can manage different forms of debt responsibly.

New credit inquiries (10%): Every time you apply for new credit, a hard inquiry gets recorded on your report. Too many inquiries in a short time can signal to lenders that you're in financial distress. However, multiple inquiries for the same type of product (like a mortgage) within a two-week window are typically grouped as a single inquiry.

Good to know: FICO and the credit bureaus weigh these factors slightly differently, which is another reason your score can vary between sources. What matters most is the overall trend and asking yourself, “Am I building good habits over time?”

Why Does a Good Credit Score Matter?

Your credit score reaches into more areas of your life than you might expect. It's not just about getting approved for a loan; it can affect the interest rates you're offered, the rental applications you submit, and even some job opportunities. Here's where a good credit score can help and where a low one might hold you back:

Loans and credit cards: A higher score means better interest rates and more options. The difference between a "good" and "fair" score on a $30,000 car loan could save you over $2,500 in interest across a 5-year term.

Mortgages: Most major Canadian banks want to see a score of at least 680 before approving a mortgage at competitive rates. If your score is below that, you may still qualify through alternative lenders, but you’ll likely have to pay a higher rate.

Renting an apartment: Many landlords across Canada run credit checks as part of the application process. A solid score can make the difference between securing the place you want and losing out to another applicant.

Car loans: Like mortgages, auto lenders look at your score to determine what rate to offer. A stronger score gives you more negotiating power and lower monthly payments.

Insurance premiums: Some insurance providers in Canada factor your credit score into their rate calculations, particularly for auto and home insurance.

Employment background checks: While less common, some employers may review your credit report as part of the hiring process, depending on the role you’re applying for. A healthy credit history signals financial responsibility.

What Credit Score Do You Need for Specific Goals?

Different financial milestones require different score thresholds. Here's a quick reference:

Good to know: With a credit score of 700, you'll likely qualify for a mortgage — but bumping it to 740+ could save you thousands in interest over the life of your loan.

How to Maintain (or Build) a Good Credit Score

Whether you're trying to protect a score you've already built or working to improve one that's taken a hit, the fundamentals are the same. Here are the habits that will help the most:

Pay on time, every time. This is the single most impactful thing you can do. Set up automatic payments or reminders so you never miss a due date. Even minimum payments count toward keeping your record clean.

Keep your credit utilization under 30%. If your total credit limit across all cards is $10,000, aim to keep your combined balances below $3,000. Lower is better because lenders see high utilization as a risk signal, even if you pay it off each month.

Don't apply for too many products at once. Each credit application triggers a hard inquiry, which can knock a few points off your score. If you're rate-shopping for a mortgage or car loan, try to do all your applications within a two-week window so they're grouped as one inquiry.

Monitor your credit report regularly. Errors happen more often than you'd think. Review your report at least once a year through Equifax or TransUnion to catch mistakes, unfamiliar accounts, or signs of identity theft early. Checking your own score is a soft inquiry, so it won't affect your score.

Keep older accounts open. The age of your credit history matters. If you have an old credit card you don't use much, consider keeping it open and making a small purchase now and then to keep it active.

Want to Know Where You Stand?

Understanding your credit score is one of the smartest financial moves you can make and it can help you plan your next steps with confidence. 

With iCash's free Credit Health tool, you can check your Equifax credit score anytime without any impact on your credit. No hidden fees, no strings attached.

Your credit score is built from your credit report and understanding what's in that report is just as important. If you want to go deeper, you can also request free copies of your credit reports directly from Equifax or TransUnion. We recommend you check both reports at least once a year to catch errors early.

Frequently Asked Questions

What is considered a good credit score in Canada? 

A score of 660 or higher is generally considered good by most lenders in Canada. Scores between 725 and 759 are considered very good, and anything above 760 falls into the excellent range. The exact thresholds can vary slightly between Equifax and TransUnion since each bureau uses its own scoring model.

What is the average credit score in Canada? 

The average FICO Score for Canadian consumers is 760 as of November 2024. However, averages can vary depending on the data source. For context, Borrowell's 2022 survey of over 2 million members found an average closer to 672. The difference comes down to sample size and scoring models.

Does checking my own credit score lower it? 

No. When you check your own score, it's recorded as a "soft inquiry," which doesn't affect your credit at all. Only "hard inquiries," like when a lender pulls your credit during a loan application, can temporarily lower your score.

Why is my Equifax score different from my TransUnion score? 

Each bureau collects data from different sources and uses its own scoring model. Not all lenders report to both bureaus, and the timing of when information gets updated can vary. A difference of 20 to 50 points between the two is fairly common and nothing to worry about.

How long does it take to improve a credit score? 

It depends on your starting point and the steps you take. Small improvements like paying down a credit card balance can show up within 30 to 90 days. Bigger changes, like recovering from a missed payment or building a longer credit history, can take six months to two years of consistent effort.

Can I get a mortgage with a 660 credit score? 

It's possible, but likely through an alternative lender or with CMHC mortgage insurance. Most major banks prefer to see a score of 680 or higher for their best mortgage rates. The higher your score, the better the terms you'll be offered.