What Is a Good Credit Score in Canada? Breaking Down the Ranges

Your credit score is a three-digit number that can open (or close) doors — whether you're applying for a credit card, car loan, or mortgage. In Canada, knowing what qualifies as a good credit score isn’t just helpful — it’s critical for smart financial planning.

Here’s a breakdown of what your score means, how lenders see it, and how to improve it if you’re not quite there yet.

Credit Score Ranges in Canada (2025)

In Canada, credit scores typically range from 300 to 900, tracked by the two main credit bureaus: Equifax and TransUnion. Here's how they break it down:

Score Range	Rating	What It Means
800–900	Excellent	Top-tier. You’ll get the best rates and offers.
740–799	Very Good	Strong credit. Most lenders will approve you.
670–739	Good	Considered creditworthy by most institutions.
580–669	Fair	You may qualify but expect higher interest.
300–579	Poor	High risk. You’ll face rejections or bad terms.

A “good” score starts at 670. But aiming for 740+ gives you real leverage.

Why Credit Scores Matter in Canada

Your score affects:

• Loan approvals (mortgages, car loans, personal lines of credit)

• Interest rates (lower score = higher rates)

• Credit limits

• Rental applications

• Even some job screenings

In short: a good score saves you money and stress.

How Credit Scores Are Calculated

Credit bureaus use slightly different formulas, but here’s the rough breakdown:

Factor	Impact
Payment History	~35%
Credit Utilization (Balances)	~30%
Length of Credit History	~15%
Types of Credit Used	~10%
Recent Inquiries	~10%

Tip: Just making payments on time and keeping balances low can have a big impact.

What Makes a Credit Score "Good"?

You don’t need a perfect 900 score. But to be seen as “good” or better by lenders, here’s what typically applies:

• 670+ is the floor for “good”

• 740+ is where you unlock the best rates

• 800+ gives you elite status with lenders — but it's not necessary to get approved

How to Improve Your Score (Quickly & Safely)

1. Always pay your bills on time — even the minimum

2. Keep credit utilization low — ideally below 30%

3. Avoid applying for multiple new credit products at once

4. Keep older accounts open — age helps

5. Check your credit report — and dispute any errors

You can get free reports from:

• Equifax Canada

• TransUnion Canada

Real-Life Example

Let’s say you apply for a car loan with a score of:

• 580 — You may get denied or charged 10%+

• 700 — You’ll likely qualify around 6–7%

• 780+ — You’ll get the lowest rates possible, often under 5%

Same car, different credit scores = thousands saved or lost.

Final Thoughts

A good credit score in Canada isn’t just a number — it’s a money-saving tool. Hit 670 and you’re in good shape. Push toward 740+ and you’re golden.

It doesn’t take perfection, just smart habits. Start small, stay consistent, and your credit score will follow.