How Credit Scores Work in Canada: The 300–900 Scale Explained
By Jordan Ellis · Published · Reviewed
Quick Answer
Canadian credit scores run from 300 to 900 and are calculated by two bureaus, Equifax and TransUnion. The biggest factors are payment history (~35%) and credit utilization (~30%), followed by credit history length, inquiries, and credit mix. Scores above 725 get the best rates; below 660, borrowing gets expensive fast.
The two bureaus and the 300–900 scale
Canada has two credit bureaus: Equifax Canada and TransUnion Canada. Each collects data from lenders (who don’t all report to both) and produces scores on a 300–900 scale. Your score compresses your borrowing history into one prediction: how likely are you to pay as agreed? Lenders use it to decide yes/no — and what rate to charge. On a $450,000 mortgage, the difference between a 780 and a 660 score can mean a full percentage point of rate, worth tens of thousands in interest.
The five factors
The bureaus don’t publish exact formulas, but the commonly cited weights are:
| Factor | Approx. weight | What it measures |
|---|---|---|
| Payment history | ~35% | Do you pay on time? A single 30-day late payment can cost dozens of points. |
| Credit utilization | ~30% | Balance ÷ limit on revolving credit. Under 30% is the floor; under 10% is ideal. |
| Length of history | ~15% | Age of oldest account, average age. Time only; can’t be hacked. |
| New credit / inquiries | ~10% | Recent hard inquiries. Clusters signal risk. |
| Credit mix | ~10% | Cards plus installment loans. Variety helps modestly. |
Two factors — payments and utilization — drive roughly two-thirds of the score, and both are fully within your control starting this month.
What lenders see at each tier
- 760+: best rates everywhere; approval is about income, not credit.
- 725–759: very good — most lenders’ best offers are open to you.
- 660–724: good; approvable, worth shopping aggressively.
- 600–659: fair; expect higher rates or smaller amounts.
- Below 600: secured cards and credit-builder products are the on-ramp back. See our secured card guide.
How to check yours free
- Equifax Canada: free report by mail, phone, or in person; free online through Borrowell.
- TransUnion Canada: free “Consumer Disclosure” report by mail or online; free score through Credit Karma Canada.
- Many banks (RBC, Scotiabank, BMO, CIBC, and others) now show your score free in their apps.
Check both bureaus — errors are common and they don’t share data. Disputing a false late payment is free and can be worth 50+ points.
The moves that actually work
- Never miss a payment. Autopay every minimum. This single habit is the biggest factor.
- Crush utilization. Paying a $4,000 balance on a $5,000-limit card down to $500 can move a score 30–60 points within one statement cycle — the fastest legitimate boost that exists. Details in our utilization guide.
- Keep old cards open. Closing your oldest card shortens history and shrinks available credit — a double hit.
- Space out applications. Batch mortgage/auto shopping within a couple of weeks; otherwise, one application at a time.
The bottom line
Canadian credit scores reward boring consistency: on-time payments, low balances, old accounts, few applications. There’s no shortcut, but utilization gives you one lever with near-instant effect — and our guide on improving your score fast sequences all the moves by impact.
Official sources
Rules and dollar limits change. Confirm current amounts with the official pages below before you act · Last reviewed .
- Credit report and score basics (Financial Consumer Agency of Canada)
- Equifax Canada: personal credit (Equifax Canada)
- TransUnion Canada (TransUnion)