Credit Score 720 in Canada: What It Means

A 720 credit score in Canada is excellent. On the 300–900 scale used by Equifax Canada and TransUnion Canada, 720 sits at the lower end of the "Excellent" band (roughly 725–759) — just below it, or right at the threshold depending on the scoring model. In practical terms, a 720 opens the door to almost every credit product in Canada at competitive rates.

If your score is currently 720, you're doing the fundamentals right. This guide explains what 720 gets you, what it doesn't, and how to push toward the 750+ "exceptional" range.

Canadian Credit Score Ranges (300–900 Scale)

What You Can Qualify for With a 720 Score

• Mortgage: Yes — you'll receive competitive rates from most major banks. You may not get the absolute best rate (sometimes reserved for 760+), but the difference is typically small.
• Car loan: Excellent rates at banks, credit unions, and dealerships. Often qualify for manufacturer promotional financing.
• Personal loan: Low-rate unsecured loans from banks and credit unions, typically 8%–12%.
• Premium rewards credit cards: Most are accessible at 720, including travel cards with significant sign-up bonuses.
• HELOC: Yes — with sufficient home equity, you'll qualify at prime + standard margins.

The Difference Between 720 and 760

The jump from 720 to 760+ matters most on mortgages. Some lenders offer "preferred" rates to borrowers with 760+ scores, which can mean 0.1%–0.3% lower than the rate offered at 720. On a $400,000 mortgage, even 0.1% saves about $400/year in interest. It's meaningful but not dramatic. For most other credit products, 720 and 760 receive essentially the same treatment.

What's Likely Keeping You from 750+

If you're at 720 and want to push higher, these are the most common factors:

• Credit utilization: Are you consistently using 20%–35% of your available credit? Bring it below 10% and watch your score jump.
• Age of accounts: If your credit file is relatively young (under 5 years average), time is the only fix.
• Mix of credit: Having only credit cards with no installment loans (car, personal loan) can limit your score. Lenders like to see you manage multiple types of credit responsibly.
• Recent inquiries: Hard inquiries from credit applications stay on your file for 3 years (affecting score for about 12 months). If you've applied for several products recently, wait.

How to Go from 720 to 750+

1. Reduce utilization to under 10%: If your combined credit limits are $20,000, keep balances under $2,000 at all times. Pay cards in full each month.
2. Request a credit limit increase: A higher limit with the same balance = lower utilization. Most issuers will grant increases after 6–12 months of responsible use.
3. Keep oldest accounts open: Don't close cards you rarely use. The history contributes positively.
4. Let your file age: Average account age improves over time. Patience is required.
5. Dispute any errors: Check your Equifax and TransUnion reports annually for inaccuracies.

Maintaining a 720+ Score

Protecting your score is easier than building it. Key habits:

• Pay every bill on time, every month — set up automatic payments for minimums at minimum
• Keep card balances well below limits
• Check your credit report every 6–12 months for errors or fraud
• Avoid unnecessary credit applications
• Monitor your score for free with Borrowell (Equifax) or Credit Karma (TransUnion)