Credit Score Canada 2026: What the Numbers Mean and How to Build Yours

Quick answer

Canadian credit scores range from 300 to 900. In 2026, a score above 720 is considered good and will qualify you for most credit products at reasonable rates. A score above 780 is excellent — you will receive the best rates from most lenders. Most Canadian adults have scores between 650 and 750. The average Canadian credit score is approximately 680–700.

Canada has two credit bureaus: Equifax and TransUnion. Each generates its own score using similar but not identical models. Most Canadian lenders check one or both. Your scores can differ between bureaus — sometimes by 20–50 points — because not all lenders report to both bureaus and the timing of updates can vary.

Canadian credit score ranges explained

What affects your Canadian credit score

How to improve your credit score in Canada

• Pay every bill on time, every month. Set up autopay for the minimum if nothing else. A single 30-day late payment can drop your score 50–100 points and stays on your file for 6 years.
• Lower your credit utilization below 30%. If your card limit is $5,000, try to keep the reported balance below $1,500. The balance reported is your statement date balance — not your payment due date balance. Pay before the statement closes if you need to reduce utilization quickly.
• Do not close old credit cards. Length of credit history is 15% of your score. Closing your oldest card reduces average account age. Keep it open and use it once a year for a small purchase to keep it active.
• Limit hard credit inquiries. Each application for a new credit card, loan, or line of credit triggers a hard inquiry. Multiple inquiries in a short period signal financial distress to lenders. Rate-shopping for a mortgage within 14–45 days typically counts as one inquiry under bureau scoring models.
• Check your credit report for errors. Request your free credit reports from Equifax and TransUnion annually at equifax.ca and transunion.ca. Errors (wrong address, incorrect missed payment, accounts that are not yours) can drag your score down and must be disputed in writing with supporting documentation.
• Use a secured credit card if starting from scratch. Newcomers to Canada with no credit history can build a score using a secured card (where you deposit collateral equal to your limit). After 6–12 months of on-time payments, many banks will offer an unsecured upgrade.

How your credit score affects mortgage rates in Canada

On a $400,000 mortgage, the difference between a 720 and a 650 credit score can mean 0.25–0.50% higher interest rate — approximately $1,000–$2,000 more per year in interest payments, or $20,000–$40,000 over the mortgage term. The gap widens further at lower scores. Canadian federally regulated lenders (big banks) generally require a minimum score of 620–650 for insured mortgages. A score below 600 typically limits you to alternative lenders (B-lenders or private mortgages) at significantly higher rates.

Bottom line

A Canadian credit score above 720 is the target for most financial goals — it unlocks the best mortgage rates, credit card rewards, and auto loan terms. The two highest-impact actions are paying every bill on time and keeping credit utilization below 30%. Both are behavioural, not income-dependent — even someone on $40,000/year can maintain an 800+ score with disciplined habits. Check your score for free through your bank's app (most major Canadian banks offer this), Borrowell, or Credit Karma — all use soft inquiries that do not affect your score. Check your full credit report from Equifax and TransUnion annually for errors, and dispute any inaccuracies in writing.