Canadian credit scores run from 300 at the low end to 900 at the top. These numbers are generated by Equifax Canada and TransUnion Canada based on the information in your credit file. Each range carries different implications for your ability to borrow and the rates you will be offered.
A score in this range typically means there is significant negative history on file — missed payments, collections, bankruptcy, or a consumer proposal. Mainstream banks will generally decline applications. Your options are limited to secured credit cards, credit builder loans, and some alternative or subprime lenders who specialize in poor credit. Interest rates will be high.
The priority at this stage is not to get new credit but to prevent further damage and start building positive history through secured products or on-time bill payments.
A fair credit score puts you in range for some mainstream products, but lenders will scrutinize the application carefully. You can likely qualify for a secured or basic unsecured credit card, a car loan (though at a higher rate), and potentially a mortgage if your income and down payment are strong. Rates will not be the best available, and some lenders will still decline.
This range is often where people end up after one or two financial missteps — a missed payment a few years ago, or a period of high utilization. The score can recover to the good range within 12 to 24 months of consistent positive behaviour.
A good credit score is where most lending products become fully accessible. You will qualify for most credit cards, auto loans, lines of credit, and mortgages. The rates you receive may not be the absolute best available, but they will be reasonable and mainstream. Most banks will approve applications without requiring co-signers or unusually large down payments.
At this level, you will qualify for nearly all credit products with good rates. Lenders see you as a responsible borrower. You will have your pick of credit cards, competitive auto loan rates, and strong mortgage options. The gap between this range and excellent is mostly a matter of a few basis points on interest rates for very large loans like mortgages.
An excellent credit score unlocks the best rates and terms available. Lenders compete for your business. You will qualify for the most rewarding credit cards, the lowest mortgage rates, and the most favourable car loan terms. Many lenders treat 760+ and 800+ identically for rate purposes — the practical difference between a 780 and an 850 is minimal.
Reaching excellent credit requires years of on-time payments, low utilization, and a diverse credit mix. Once you are in this range, the goal shifts from building to maintaining.
The factors that put you in a higher or lower range are the same across all scoring models. The most impactful single events that drop scores into the poor range are:
The factors that build into the excellent range over time:
Usually yes, within one range category. If Equifax says 710 and TransUnion says 690, you are in the same practical range. If one bureau shows 720 and the other shows 580, that is a significant discrepancy worth investigating — likely an error on one report or a creditor that reports to only one bureau.
Moving from poor to fair typically takes 12 to 24 months of clean behaviour. Moving from fair to good can happen in six to twelve months if you focus on utilization and payment consistency. Moving from good to excellent usually takes two or more years of continued positive history. There is no shortcut that bypasses the time component of the scoring model.
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