Written By:
Sumit Walia
A credit score is a crucial financial indicator that lenders use to assess an individual’s creditworthiness when applying for credit cards, loans, or mortgages. Understanding the average credit score in Canada, variations by age and province, and what constitutes a good credit score is essential for managing personal finances effectively. In this article, we will delve into these topics and provide insights on how to check and improve your credit score.
Credit scores can vary significantly by age group, reflecting differences in credit histories and financial behaviors. According to Equifax, the average credit scores by age group in Canada are as follows:
Credit scores are categorized into brackets, which help assess an individual’s creditworthiness. These categories are typically:
Before applying for credit, it’s advisable to check your credit score. In Canada, two major credit bureaus, Equifax and TransUnion, provide credit reports and scores. You can access your credit score through free online services like Borrowell (Equifax) and ClearScore (TransUnion). These services also offer credit monitoring and educational resources to help you improve your credit.
If you find that your credit score is not where you want it to be, there are steps you can take to improve it:
In the United States, credit scores use a different scale, ranging from 300 to 850. The average credit score (FICO® Score) in the USA was 714 in 2022, according to Experian.
A good credit score in Canada is typically considered to be 660 or higher.
While specific statistics may not be available, only a small proportion of Canadians are likely to have a credit score over 800.
While it is theoretically possible to achieve a perfect credit score of 900 in Canada, it is exceptionally rare.
A bad credit score in Canada is typically one that falls within the range of 300 to 559. Scores between 560 and 659 are considered fair and may pose challenges in obtaining credit.
The content provided on Myfinancesguru.com is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.
