According to the Equifax credit bureau, the average Canadian credit score is 700. However, credit scores in Canada vary based on scoring models used by the credit bureaus.
According to the Borrowell database, the average Canadian credit score in 2022 was 672 and 667 in 2021.
A credit score helps determine your creditworthiness, and if you are wondering how you compare to the average credit score in Canada by age, scroll through this post to find out.
Average Credit Score By Age in Canada
The table below highlights the average Canadian credit score by age per the Equifax database. The values are approximate and can vary for different credit scoring models.
| Age | Average Credit Score |
|---|---|
| 18 -25 | 692 |
| 26 – 35 | 697 |
| 36 – 45 | 710 |
| 46 – 55 | 718 |
| 56 – 65 | 737 |
| 65+ | 750 |
There are a lot of factors taken into consideration while calculating a credit score, and length of credit history is one of them.
Hence, older Canadians tend to have higher credit scores than younger ones. However, by exercising responsible credit habits in their 20s, younger Canadians can have excellent credit scores too.
Average Canadian Credit Score By Province and City
The below table highlights the average Canadian credit score by province and city.
| Province | Average Credit Score By City | Average Credit Score |
|---|---|---|
| Ontario | Toronto: 696 Mississauga: 695 Markham: 720 Brampton: 675 Kitchener: 679 Hamilton: 660 Ottawa: 688 | 688 |
| British Columbia | Vancouver: 705 Victoria: 694 Surrey: 675 | 691 |
| Alberta | Calgary: 667 Edmonton: 649 | 658 |
| Saskatchewan | Regina: 659 Saskatoon: 656 | 658 |
| Manitoba | Winnipeg: 661 | 661 |
| Nova Scotia | Halifax: 664 | 664 |
| Quebec | Montreal: 687 Quebec City: 683 Laval: 679 Gatineau: 663 | 678 |
| New Brunswick | Moncton: 640 Fredericton: 658 | 649 |
If you observe the table above, the Canadian provincial credit score is proportional to the province that offers higher salaries and more job opportunities (Eg: Ontario and British Columbia)
What is a good credit score in Canada?
According to Equifax, a credit score between 660 – 724 is considered good in Canada. If your credit score is between 725 and 759, it’s considered very good, and 760+ is excellent.
If your credit score is above 660, lenders in Canada consider you a low-risk borrower.
Canadian Credit Score Range
Canadian credit score ranges between 300 – 900 points. Equifax and TransUnion are Canada’s leading credit bureaus. Each of them uses a different scoring model to predict a credit score.
Hence your credit score will be different on Equifax and TransUnion credit reports.
Equifax Credit Score Ranges
Equifax has five credit score ranges, and they are:
- Poor: 300 – 559
- Fair: 560 – 659
- Good: 660 – 724
- Very Good: 725 – 759
- Excellent: 760+
If you have never had an Equifax credit report, it will look like the image below.
The above image is a snapshot of my old Equifax report from 2020, which I used for a rental application.
Not all lenders will consider a credit score good, and they might have a different scoring model for their approval process.
TransUnion Credit Score Ranges
TransUnion credit score ranges differ from Equifax and don’t use labels like poor or good. Instead, they label with color-coded alphabets:
- A 833 – 900
- B 790 – 832
- C 743 – 789
- D 693 – 742
- F 300 – 692
You can view a sample of the TransUnion credit report below. It’s one of my older TransUnion reports from 2022.
How are credit scores calculated in Canada?
Credit bureaus consider the following factors when calculating credit scores:
- Payment History: Full-on-time payments positively affect your credit score, while late or missed payments have adverse effects. If you have a long history of late or missed payments, that could hurt your credit score. Payment history accounts for 35% of your credit score.
- Credit Utilization: Utilizing more than 35% of your revolving credit (i.e., total credit of all your credit cards) affects your credit score. Credit utilization accounts for 30% of your credit score.
- Credit History: The length of your credit history is another crucial factor as it provides details on your repayments and credit utilization over a period of time. Credit history accounts for 15% of your credit score.
- Inquiries: Inquiries account for 10% of your credit score. Hard inquiries occur when a lender accesses your credit report to assess your creditworthiness. If you apply for multiple credit cards, it triggers a hard inquiry.
- Public Records: Bankruptcies, consumer proposals, or collection issues information on your file can hurt your credit score. Public records don’t last a lifetime and expire after a while. Public records account for 10% of your credit score.
How to improve your credit score in Canada?
If your credit score is below the Canadian average or you want to reach a higher score, you can achieve it with a few minor tweaks to your financial behavior.
Here are five steps to improve your creditworthiness:
- Make full payments on time: If you have been making minimum payments on your credit cards, look for ways to cut your spending and make full-on-time payments. It will help you boost your credit score and save you from paying high interest on credit card debt.
- Don’t max out your Credit Cards: Don’t rely heavily on your credit cards. If you have a $5000 credit limit and spend $4000 often, your credit utilization would be more than 50%. Keep your credit utilization below 35%, and don’t max out your credit cards.
- Don’t apply for unnecessary Credit: Hard inquiries will hurt your credit score, and unless you need a credit or loan, don’t apply for multiple credits simultaneously.
- Don’t close current accounts: Just because you are not using a credit card, don’t cancel the credit account. Active loan products are required to build credit. Keeping credit accounts open also creates credit history, which lenders prefer to view how you’ve handled credit over the years.
- Maintain a good credit mix: Credit cards are one of many credit-building tools. Your mobile, internet, and utility payment history will boost your credit score. A healthy credit mix will help you improve your credit score.
Is 750 a good credit score for a 20-year-old?
750 is an excellent credit score for a 20-year-old.
Is it possible to get a 900 credit score in Canada?
It’s not impossible to get a 900 credit score in Canada, but achieving that score might take some time and a good credit mix to reach the top score.
What is a good credit score in Canada for a mortgage?
It’s hard to predict what is a good credit score for a mortgage as mortgage lenders have their credit scoring models to approve the process.
Anything above the Canadian average credit score of 700 should be good for a mortgage.
If you don’t have a 700 credit score, you can look for different lenders willing to approve mortgages with a lower credit score.
How to check my credit score for free?
Some big banks in Canada offer free credit report access if you bank with them.
Below is a snapshot of my credit report from Equifax that I accessed for free through a CIBC bank account.
You can also get a free credit report from Equifax and TransUnion website once every month.
Bottom Line
A good credit score is a must, no matter what age group you fall into. Having an above-average credit score in Canada can help you save money on the interest rates you pay for borrowing credit.
Take steps to build healthy credit and maintain it throughout your life.
And if this post helped you learn something new, share it with others.
Written by Sunil Raaj.