What Is the Average Credit Score in Canada? (2024)

A credit score is a three-digit numerical representation derived from data in your credit report and shows your capability to manage credit. It's a crucial indicator that influences a lender's decision whether or not to lend you money.

In Canada, credit scores range from 300 to 900. It's important to maintain a good credit score so you can access financial products like loans and credit cards, and to secure a favorable interest rate. Below you'll learn about credit scores, the average credit score in Canada, how to check it for free, and how to improve it.

What Is the Average Credit Score in Canada?

According to the Fair Isaac Corporation (FICO) blog, the average Canadian FICO score remains at 762. Meanwhile, in its 2022 report, Borrowell states that the average credit score of over 2 million of its Canadian members is 672, compared to 667 in 2021.

Average Credit Score by Province

According to the same Borrowell report mentioned above, the following are the average credit scores of different provinces and some of their major cities:

Alberta - 658

Calgary - 667
Edmonton - 649

British Columbia - 694

Burnaby - 700
Surrey - 675
Vancouver - 705
Victoria - 694

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Credit Scores: Explained

Credit scores in Canada are categorized according to the following ranges:

300-574 (Poor). Consumers classified under this category are considered high-risk borrowers. They will have a hard time qualifying for loans, credit cards, or mortgages. And when they get a loan approval, they may need to put up some funds as collateral and be charged with very high interest rates.
575-659 (Below Average). With this credit score, borrowers may also find it hard to secure a loan product with standard interest rates. When they are approved for a loan, the interest rate will be higher than average.
660-712 (Fair). Having a Fair credit score lets you take out credit from lenders with the standard rates and terms. It lets you qualify and get approved for most credit cards and loans.
713-740 (Good). A Good credit score categorizes you as a low-risk borrower, which gives you access to lower interest rates and better borrowing terms. You can also enjoy access to better credit cards and lower insurance rates.
741-900 (Excellent). With an Excellent credit score, you become eligible for the best rates and loan terms on any financial product you wish to take out. It also lets you get approval from your lender to finance large purchases, apart from enjoying promotional rates, cashback bonuses, and rewards.

What Is the Average Credit Score in Canada? (4)

How to Check Your Credit Score for Free

As your credit score can have a significant impact on your financial future, you must monitor it as often as you can. One way to check your credit score for free is through Borrowell. Once you complete the quick signup process, you don't only get to check your credit score. But, you can also download your free Equifax credit report.

Clearscore is another no-cost way to check your credit score and credit report from Equifax. You only need to provide your email address during the signup process, which only takes 3 minutes. Once you have signed up, you can also get exclusive access to credit deals.

More recently, Equifax now also offers direct access to credit score checks on their platform.

How to Improve Your Credit Score

Here are some effective ways to improve your credit score:

Review your credit report. Check that there are no errors or inaccuracies in the information, no unpaid balances, and that there are no signs of fraud or identity theft. Dispute any crest report errors. If you have old debts, pay off as many as you can.

Build your credit. Pay bills on time. Keep your monthly balance low or pay it in full every month. Establish a credit history by opening a secured credit card from a lender that will report your payment history to the credit reporting bureaus.

Don't exceed your credit limit. Use credit sensibly and never go over your credit card limit. When possible, use less than 30% of your available credit. Using a lot of your credit can lower your credit score. This may also result in lenders seeing you as a greater risk.