Your credit score is one of the most important numbers in your financial life — affecting your mortgage rate, rental applications, car loans, and even some job applications. This hub covers every aspect of Canadian credit scores, from understanding how they're calculated to rebuilding after financial hardship.
In Canada, credit scores are calculated by two major credit bureaus: Equifax and TransUnion. Both use scoring models that produce a number between 300 and 900, with higher being better. A score above 760 is considered excellent and will typically qualify you for the best available rates on mortgages and loans. A score between 660 and 759 is good. Below 600 is where lenders begin to add significant risk premiums or decline applications entirely.
Your credit score is calculated from five main factors: payment history (the most important, at roughly 35% of your score), credit utilization (how much of your available credit you're using — keep it under 30%), length of credit history, types of credit held, and recent credit inquiries. Understanding these factors gives you a clear roadmap for improvement.
Many Canadians are surprised to learn they have two credit files — one at Equifax and one at TransUnion — and that the scores can differ, sometimes significantly. Lenders may check one or both bureaus depending on their process. For major decisions like a mortgage application, it's worth checking both files well in advance so you can dispute any errors that may be dragging your score down.
Canada offers several legitimate ways to check your credit score for free. Borrowell partners with Equifax to offer free weekly score updates; Credit Karma provides TransUnion scores. Both services are genuinely free and do not require a credit card. Checking your own score is a "soft inquiry" and has zero impact on your actual score — a common misconception that leads many Canadians to avoid checking.
For those with damaged or thin credit files, the path to a better score is methodical but achievable. Secured credit cards — where you deposit cash as collateral — report monthly to both bureaus and are one of the fastest ways to build a positive payment history. Use the guides below to navigate every credit score topic relevant to your situation.
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