Credit Score Basics: A Canadian Guide

Your credit score controls your access to housing, transportation, and affordable lending. Here is exactly how the Canadian system works.

The Two Bureaus

In Canada, there are two private companies that track your financial behavior: Equifax and TransUnion.

They operate independently. If you check your score on Equifax, it might be a 620, while TransUnion might report a 590. This is completely normal. Lenders typically pull from one or the other, and specialized auto lenders often pull both to find the highest score to maximize your approval odds.

The Scoring Tiers

• 760 to 900 (Excellent): You get the lowest interest rates available everywhere.
• 725 to 759 (Very Good): You will easily secure prime lending from traditional banks.
• 660 to 724 (Good): You are acceptable to most banks, though perhaps not at the absolute lowest promotional rate.
• 560 to 659 (Fair): You are entering subprime territory. Banks may decline you, or require massive down payments.
• 300 to 559 (Poor): You are firmly in the subprime category. Traditional banks will decline you automatically. You must use specialized alternative lenders.