Your score reflects your financial health at a point in time – the higher your score, the lower the risk lenders assign to you. Lenders also consider income and existing debt alongside your score.
Reported by:
Equifax Canada & Trans Union Canada
Score range in Canada:
300 – 900
What makes up your credit score:
35
%
Payment history
The single biggest factor. Even one missed minimum payment – regardless of amount – affects your score. Set up automatic minimum payments so nothing slips. Collections from unpaid bills (utilities, cell plans, parking tickets) also appear here and can significantly drag your score down.
30
%
Credit utilization
The ratio of your balance to your total credit limit. Stay below 40% at all times. Avoid exceeding 70% even if you pay in full each month — utilization is often captured at your statement date, not your payment date.
15
%
Length of credit history
Lenders prefer at least two years of history per account. The older your accounts, the better. If you switch providers, keep your old accounts open until new ones are well established – closing old accounts shortens your average history.
10
%
Types of credit
A healthy mix of credit types (installment loans, revolving credit, lines of credit) demonstrates you can manage different obligations. Lenders like to see at least two active accounts. Revolving credit like credit cards carries more perceived risk than fixed loans – aim for balance in your mix.
10
%
Credit inquiries
A hard inquiry is triggered whenever a lender checks your credit – including when you open a bank account or new phone plan. Avoid sign-ups purely for discounts or store points. Keep hard inquiries under three per year unless you have a specific need.
Keep in mind:
Your credit score is one piece of your overall financial picture. Lenders also weigh your income, employment stability, and existing debt load when assessing your mortgage application. A strong score opens more doors — but the full picture matters.