Tom Markham
Chief Commercial Officer at ClearScore
What is a credit score?
27 October 2026
14 min read
Contents
Key takeawaysCredit score in shortWhat is a credit score?How do credit scores work?How is a credit score calculated?What affects your credit score?What is the importance of a credit score?What credit score is needed for a credit card?What credit score is needed for a mortgage?What is a good credit score in Canada?How to check your credit score and credit reportHow to read your credit reportHow to improve your credit scoreHow long does it take to improve a credit score?What to do if there is an error on your credit reportFrequently asked questions about credit scores in CanadaKey takeaways: understanding your credit scoreA plain-language guide to credit scores in Canada, how lenders may use them, and how ClearScore helps you check yours.
Key takeaways
A credit score is a three-digit number based on information in your credit report, and it gives lenders an idea of how likely you may be to repay money you borrow.[^1]
Canadian credit scores are commonly shown on a scale from 300 to 900, and higher scores generally suggest lower risk to a lender.[^4]
Payment history usually carries the most weight, along with how much of your available credit you use, how long you have had credit, recent applications and your mix of credit products.[^3]
Your score is one part of a lending decision. Lenders also look at income, existing debts and their own rules, so a high score does not guarantee approval.
Equifax and TransUnion are Canada's two main credit bureaus, and your score can differ between them because they may hold slightly different information.
ClearScore lets you check your credit report and score for free, track changes over time and see personalized guidance, though it cannot change the information lenders hold.
Credit score in short
A credit score is a three-digit number calculated from the information in your credit report. It helps lenders estimate how likely you are to repay borrowed money.[^2] In Canada, scores usually range from 300 to 900, and a higher number generally signals lower lending risk.[^1] It is useful, but it is not a complete picture of you or your finances.
What is a credit score?
Credit score meaning in simple terms
Think of your credit report as the record, and your credit score as a number based on information in that record. The record shows things like your credit cards, loans, balances and payment history. The number summarizes some of that information so a lender can read it quickly.
A lower score is not a permanent label. It reflects what has been reported about your credit so far, and that can change as your habits change.
What is a credit score in Canada?
In Canada, credit scores are produced by credit bureaus and by lenders using their own formulas. Scores generally sit between 300 and 900.[^3] Different scoring models can produce different numbers from similar information, so there is no single score that every organization sees.
What is the difference between a credit score and a credit report?
Your credit report is a detailed file. Your credit score is a calculation drawn from it. If the report contains an error, the score built from it may also be affected, which is one reason reviewing both matters.
What do credit score ranges mean in Canada?
The table below shows commonly used categories. They are general guides, not approval thresholds.
Score range | Common label | What it may suggest to a lender |
|---|---|---|
| Score range 300 to 559 | Common label Poor | What it may suggest to a lender Limited or difficult credit history; fewer options may be available |
| Score range 560 to 659 | Common label Fair | What it may suggest to a lender Some concerns may exist; terms offered may be less favourable |
| Score range 660 to 724 | Common label Good | What it may suggest to a lender Often seen as a reasonable risk by many lenders |
| Score range 725 to 759 | Common label Very good | What it may suggest to a lender May support access to a wider range of products |
| Score range 760 to 900 | Common label Excellent | What it may suggest to a lender Generally viewed as lower risk, depending on the lender |
How do credit scores work?
Credit bureaus collect information from lenders, such as banks, credit card issuers and finance companies. Scoring models then use that information to estimate the likelihood that you will repay what you borrow.[^2]
How credit bureaus use your credit information
Lenders report account details to the bureaus, often monthly. The bureaus store this in your file and apply their models to produce a score.
How lenders use credit scores
A lender may use your score as one input. Many also review your income, your existing monthly payments and their internal lending policy before making a decision.
Why your credit score may differ between Equifax and TransUnion
Not every lender reports to both bureaus, and reporting dates differ. Each bureau also uses its own formula. A gap between two scores is normal and does not automatically mean something is wrong.
How often credit scores are updated
Your score can change whenever new information reaches your file. That may happen monthly for many accounts, so your number may move up or down through the year.
How is a credit score calculated?
Scores are calculated by mathematical models that read your credit report. Common factors include payment history, credit utilization, length of credit history, recent inquiries and the mix of credit products you hold.[^3] Exact weightings are not published and vary by model.
Factor | What it looks at | Typical influence |
|---|---|---|
| Factor Payment history | What it looks at Whether you pay on time | Typical influence Usually the largest factor |
| Factor Credit utilization | What it looks at How much of your available credit you use | Typical influence Often significant |
| Factor Length of credit history | What it looks at How long accounts have been open | Typical influence Moderate |
| Factor Credit mix | What it looks at Cards, loans, lines of credit | Typical influence Smaller |
| Factor Recent inquiries | What it looks at New credit applications | Typical influence Smaller |
Payment history
Paying on time is the habit most often linked to a stronger score. Late or missed payments can be reported and may lower it.
Credit utilization and available credit
This compares what you owe to the credit available to you. Using only a manageable portion of your limit may help.
Length of credit history
Longer histories give models more to work with. New borrowers may see a lower score simply because the file is thin.
Types of credit accounts
A mix of products, such as a card and an instalment loan, may be viewed differently from a single account. This is usually a minor factor.
Hard credit inquiries
When you apply for credit, a lender may record a hard inquiry. Several applications close together could suggest you are relying heavily on new credit.
Public records, collections and other reported information
Collections, judgments, bankruptcies and consumer proposals may appear on your report and can affect scoring while they remain on file.
What affects your credit score?
Paying bills on time. Consistency supports healthy credit habits over time.
Carrying high credit card balances. High balances relative to limits may weigh on your score.
Applying for several credit products. Spacing out applications may reduce the effect of multiple inquiries.
Closing an old credit account. This can reduce available credit and shorten your history, so consider it carefully.
Changing a credit limit. A higher limit may lower your utilization; a lower limit may raise it.
Missing payments or entering collections. These are among the more serious negative entries.
Bankruptcy and consumer proposals. Both are reported and may remain on your file for years.
Errors or fraudulent activity. Accounts you do not recognize may affect your score until they are reviewed.
What is the importance of a credit score?
Your score may influence whether you qualify for credit and the terms offered. Lenders use it to help predict repayment risk.[^4]
Access to credit cards and loans. A stronger score may open more options.
Interest rates and borrowing costs. Lower perceived risk may mean lower rates, which affects total cost, not just the monthly payment.
Renting a home and other applications. Some landlords and service providers may run a credit check, with your consent.
Insurance, employment and credit checks. Rules vary by province and by organization: most provinces require your consent before a credit check, while a few require only that you be notified.
Why a good score does not guarantee approval. Affordability, income stability and lender policy all matter.
What credit score is needed for a credit card?
There is no single minimum score for every credit card in Canada. Criteria vary by issuer, product and applicant circumstances.
Card type | Typical borrower profile | What issuers may expect |
|---|---|---|
| Card type Secured card | Typical borrower profile Building or rebuilding credit | What issuers may expect Often available with limited history; a deposit is usually required |
| Card type Credit builder credit card | Typical borrower profile Thin file or past difficulties | What issuers may expect Lower score ranges may be considered |
| Card type Standard card | Typical borrower profile Established history | What issuers may expect Mid-range scores and steady income are often reviewed |
| Card type Rewards or premium card | Typical borrower profile Longer, stronger history | What issuers may expect Higher score ranges and income tests are common |
What credit score is needed for a secured credit card?
Secured cards are backed by a deposit, so they may be available to people with a low score or no score. Payments are usually reported, which can help build history.
What credit score is needed for a credit builder credit card?
These products are designed for limited credit history. Limits are often small and interest rates may be higher.
What credit score is needed for a rewards credit card?
Rewards cards often sit at the stricter end. Issuers may look for a longer history and may also apply income requirements.
How to check credit card eligibility without affecting your score
Many providers offer eligibility checks that use a soft search. Soft searches do not affect your score, while a full application may record a hard inquiry.
How ClearScore can help compare personalized credit card options
ClearScore shows card options matched to the information in your profile. ClearScore is a credit broker, not a lender. Matches are not approvals, and the lender makes the final decision after its own checks.
What credit score is needed for a mortgage?
Mortgage lenders assess the whole application, including income, debts, down payment, affordability and credit history. There is no universal score threshold, although specific programs set baselines - for example, CMHC mortgage loan insurance requires a minimum credit score for at least one borrower.
Consideration | What lenders may review |
|---|---|
| Consideration Credit history | What lenders may review Payment record, length of history, recent inquiries |
| Consideration Income and employment | What lenders may review Stability and verifiable earnings |
| Consideration Down payment | What lenders may review Size and source of funds |
| Consideration Debt levels | What lenders may review Existing payments relative to income |
| Consideration Insured vs uninsured | What lenders may review Mortgage default insurance rules may apply where the down payment is under 20% |
A stronger credit profile may support approval and may influence the rate offered. Mortgage shopping can create inquiries, and scoring models often treat several mortgage quotes within a short window as a single search. Errors on your report, your current balances and recent credit applications can all affect how a lender sees an application.
What is a good credit score in Canada?
Scores from roughly 660 upward are often described as good, and higher ranges as very good or excellent. These are general categories, not guarantees.
Approval with a lower score is possible, depending on the product, the lender and your wider circumstances. It is also worth remembering that a high score does not always mean strong financial health. Someone may have an excellent score and little savings, so treat the number as one measure among several.
How to check your credit score and credit report
You can request your credit report and score from Equifax Canada and TransUnion Canada.[^1] Reviewing both can help you spot discrepancies, because each file may hold different information.
Equifax and TransUnion. Both offer online access and other request methods. Both Equifax Canada and TransUnion Canada provide your credit report free on request, while free access to your score varies and paid products may bundle scores and monitoring.
What to look for. Check your personal details, every account listed, balances, payment markers, inquiries and anything in collections.
ClearScore. ClearScore provides free access to your credit report and score with ongoing monitoring and alerts when certain things change. It shows reported information; it does not control what lenders report.
Monitoring and fraud. Alerts may help you notice an unfamiliar account or application sooner, which can be an early sign of identity theft.
Checking your own report or score is a soft check and does not lower it.
How to read your credit report
Personal information. Name, past addresses and employment details. Errors here may indicate mixed files.
Credit accounts and payment history. Each account with its limit, balance and payment record.
Credit inquiries. Hard inquiries from applications and soft inquiries from your own checks.
Collections and public records. Unpaid debts sent to collections, plus items such as bankruptcies or consumer proposals.
Consumer statements. A short note you may add to explain your situation.
Why bureaus differ. Different lenders, different reporting dates, different models.
How to improve your credit score
Pay every bill on time. Automatic payments or reminders can help.
Credit utilization. Using a modest share of your available credit can help.
Paying more than the minimum. This reduces balances faster and lowers interest costs.
Limit unnecessary credit applications. Apply when it fits your plans.
Older accounts. Length of history can help.
Check reports for errors and fraud. Challenge anything that looks inaccurate.
Build positive history gradually. Small, steady habits compound.
Use ClearScore's personalized tips. ClearScore offers guidance based on your report, which may help you decide where to focus. It is general information, not personalized financial advice.
How long does it take to improve a credit score?
There is no fixed timeline. Improvement depends on what caused the lower score, whether the reporting is accurate and how consistent your habits are.
On-time payments are usually reported on your lender's monthly reporting cycle rather than the moment you pay, so a steady record builds month by month. Reducing high balances may be reflected after your lender's next report. Retention periods vary: late or missed payments can stay on file for up to six years, a consumer proposal for three years after it is paid off or six years after it is signed (whichever comes first), and a first bankruptcy usually for six years after discharge, so rebuilding usually happens gradually rather than quickly.
What to do if there is an error on your credit report
Common errors include accounts that are not yours, wrong balances, payments marked late in error, duplicate entries and outdated personal details.
Contact the credit bureau that shows the information and open a dispute.
Contact the lender or organization that reported the information and ask it to correct the entry with the bureau.
Keep copies of statements, cheques or letters that support your case.
Check back once the review is complete, and check the other bureau too.
If you suspect identity theft, report it to the bureaus, your lenders and the Canadian Anti-Fraud Centre, and consider asking for a fraud or security alert on your file. Accurate information cannot be removed just because it is negative, but you can challenge anything you believe is inaccurate.
Frequently asked questions about credit scores in Canada
What is a credit score?
A three-digit number based on your credit report that helps lenders estimate how likely you are to repay borrowed money.[^1]
What is a credit score in Canada?
The same idea, shown on a scale that generally runs from 300 to 900 and produced by bureaus such as Equifax and TransUnion.[^3]
What is the highest credit score in Canada?
Scores commonly top out at 900, although very few people reach it.
Is a 700 credit score good in Canada?
It usually falls in the good range, though each lender sets its own criteria.
Does checking your own credit score lower it?
No. Checking your own report or score is a soft check and does not affect it.
Does paying off a credit card improve your credit score?
It may help by lowering your utilization, depending on your other accounts and when your lender reports.
How often should you check your credit score?
Many people review theirs every few months, or more often if they are planning to apply for credit.
Can you have a credit score without a credit card?
Yes. Loans, lines of credit and some other reported accounts can build a history.
How long do negative items stay on a credit report?
Often around six years for many items, depending on the bureau, the item and provincial rules.
Can ClearScore help improve your credit score?
ClearScore can help you see and track your credit report and score and offers general guidance. It cannot change what lenders report or promise a particular result.
Key takeaways: understanding your credit score
Your credit score is a three-digit summary of information in your credit report, used by lenders in Canada alongside other details when they assess an application.[^4] Payment history, credit utilization, length of history, credit mix and recent inquiries are the usual factors.[^3] There is no single score required for a credit card or mortgage, because lenders weigh the full picture.
The practical next step is simple: check your credit report and score, review every entry, and build steady habits over time. You can sign up with ClearScore for free to see your credit report and score, track changes and get personalized guidance on the areas you may want to focus on.
[^1]: Financial Consumer Agency of Canada, "Credit report and score basics" - https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/credit-report-score-basics.html
[^2]: Financial Consumer Agency of Canada, "Order your credit report" - https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/order-credit-report.html
[^3]: Financial Consumer Agency of Canada, "Financial basics: credit" - https://www.canada.ca/en/financial-consumer-agency/services/financial-basics/financial-basics-videos/financial-basics-video-credit.html
[^4]: CBC News, "Credit score never checked by majority of Canadians" - https://www.cbc.ca/news/canada/british-columbia/credit-score-never-checked-by-majority-of-canadians-bmo-report-1.3054523
This article provides general information only and does not constitute financial advice. Individual financial circumstances vary, and you may wish to seek independent advice before making financial decisions. Information is accurate at the time of writing and may change.
Tom Markham
Chief Commercial Officer at ClearScore
27 October 2026
14 min read
Contents
Key takeawaysCredit score in shortWhat is a credit score?How do credit scores work?How is a credit score calculated?What affects your credit score?What is the importance of a credit score?What credit score is needed for a credit card?What credit score is needed for a mortgage?What is a good credit score in Canada?How to check your credit score and credit reportHow to read your credit reportHow to improve your credit scoreHow long does it take to improve a credit score?What to do if there is an error on your credit reportFrequently asked questions about credit scores in CanadaKey takeaways: understanding your credit scoreMeet the author
Chief Commercial Officer at ClearScore
Tom Markham
Tom is Chief Commercial Officer at ClearScore, with over 18 years in financial services. He leads partnerships that help millions get access to the right credit, and writes to help you understand your score and find the products that fit.
What is a credit score?
Tom Markham
Chief Commercial Officer at ClearScore
27 October 2026
14 min read
Contents
Key takeawaysCredit score in shortWhat is a credit score?How do credit scores work?How is a credit score calculated?What affects your credit score?What is the importance of a credit score?What credit score is needed for a credit card?What credit score is needed for a mortgage?What is a good credit score in Canada?How to check your credit score and credit reportHow to read your credit reportHow to improve your credit scoreHow long does it take to improve a credit score?What to do if there is an error on your credit reportFrequently asked questions about credit scores in CanadaKey takeaways: understanding your credit scoreA plain-language guide to credit scores in Canada, how lenders may use them, and how ClearScore helps you check yours.
Key takeaways
A credit score is a three-digit number based on information in your credit report, and it gives lenders an idea of how likely you may be to repay money you borrow.[^1]
Canadian credit scores are commonly shown on a scale from 300 to 900, and higher scores generally suggest lower risk to a lender.[^4]
Payment history usually carries the most weight, along with how much of your available credit you use, how long you have had credit, recent applications and your mix of credit products.[^3]
Your score is one part of a lending decision. Lenders also look at income, existing debts and their own rules, so a high score does not guarantee approval.
Equifax and TransUnion are Canada's two main credit bureaus, and your score can differ between them because they may hold slightly different information.
ClearScore lets you check your credit report and score for free, track changes over time and see personalized guidance, though it cannot change the information lenders hold.
Credit score in short
A credit score is a three-digit number calculated from the information in your credit report. It helps lenders estimate how likely you are to repay borrowed money.[^2] In Canada, scores usually range from 300 to 900, and a higher number generally signals lower lending risk.[^1] It is useful, but it is not a complete picture of you or your finances.
What is a credit score?
Credit score meaning in simple terms
Think of your credit report as the record, and your credit score as a number based on information in that record. The record shows things like your credit cards, loans, balances and payment history. The number summarizes some of that information so a lender can read it quickly.
A lower score is not a permanent label. It reflects what has been reported about your credit so far, and that can change as your habits change.
What is a credit score in Canada?
In Canada, credit scores are produced by credit bureaus and by lenders using their own formulas. Scores generally sit between 300 and 900.[^3] Different scoring models can produce different numbers from similar information, so there is no single score that every organization sees.
What is the difference between a credit score and a credit report?
Your credit report is a detailed file. Your credit score is a calculation drawn from it. If the report contains an error, the score built from it may also be affected, which is one reason reviewing both matters.
What do credit score ranges mean in Canada?
The table below shows commonly used categories. They are general guides, not approval thresholds.
Score range | Common label | What it may suggest to a lender |
|---|---|---|
| Score range 300 to 559 | Common label Poor | What it may suggest to a lender Limited or difficult credit history; fewer options may be available |
| Score range 560 to 659 | Common label Fair | What it may suggest to a lender Some concerns may exist; terms offered may be less favourable |
| Score range 660 to 724 | Common label Good | What it may suggest to a lender Often seen as a reasonable risk by many lenders |
| Score range 725 to 759 | Common label Very good | What it may suggest to a lender May support access to a wider range of products |
| Score range 760 to 900 | Common label Excellent | What it may suggest to a lender Generally viewed as lower risk, depending on the lender |
How do credit scores work?
Credit bureaus collect information from lenders, such as banks, credit card issuers and finance companies. Scoring models then use that information to estimate the likelihood that you will repay what you borrow.[^2]
How credit bureaus use your credit information
Lenders report account details to the bureaus, often monthly. The bureaus store this in your file and apply their models to produce a score.
How lenders use credit scores
A lender may use your score as one input. Many also review your income, your existing monthly payments and their internal lending policy before making a decision.
Why your credit score may differ between Equifax and TransUnion
Not every lender reports to both bureaus, and reporting dates differ. Each bureau also uses its own formula. A gap between two scores is normal and does not automatically mean something is wrong.
How often credit scores are updated
Your score can change whenever new information reaches your file. That may happen monthly for many accounts, so your number may move up or down through the year.
How is a credit score calculated?
Scores are calculated by mathematical models that read your credit report. Common factors include payment history, credit utilization, length of credit history, recent inquiries and the mix of credit products you hold.[^3] Exact weightings are not published and vary by model.
Factor | What it looks at | Typical influence |
|---|---|---|
| Factor Payment history | What it looks at Whether you pay on time | Typical influence Usually the largest factor |
| Factor Credit utilization | What it looks at How much of your available credit you use | Typical influence Often significant |
| Factor Length of credit history | What it looks at How long accounts have been open | Typical influence Moderate |
| Factor Credit mix | What it looks at Cards, loans, lines of credit | Typical influence Smaller |
| Factor Recent inquiries | What it looks at New credit applications | Typical influence Smaller |
Payment history
Paying on time is the habit most often linked to a stronger score. Late or missed payments can be reported and may lower it.
Credit utilization and available credit
This compares what you owe to the credit available to you. Using only a manageable portion of your limit may help.
Length of credit history
Longer histories give models more to work with. New borrowers may see a lower score simply because the file is thin.
Types of credit accounts
A mix of products, such as a card and an instalment loan, may be viewed differently from a single account. This is usually a minor factor.
Hard credit inquiries
When you apply for credit, a lender may record a hard inquiry. Several applications close together could suggest you are relying heavily on new credit.
Public records, collections and other reported information
Collections, judgments, bankruptcies and consumer proposals may appear on your report and can affect scoring while they remain on file.
What affects your credit score?
Paying bills on time. Consistency supports healthy credit habits over time.
Carrying high credit card balances. High balances relative to limits may weigh on your score.
Applying for several credit products. Spacing out applications may reduce the effect of multiple inquiries.
Closing an old credit account. This can reduce available credit and shorten your history, so consider it carefully.
Changing a credit limit. A higher limit may lower your utilization; a lower limit may raise it.
Missing payments or entering collections. These are among the more serious negative entries.
Bankruptcy and consumer proposals. Both are reported and may remain on your file for years.
Errors or fraudulent activity. Accounts you do not recognize may affect your score until they are reviewed.
What is the importance of a credit score?
Your score may influence whether you qualify for credit and the terms offered. Lenders use it to help predict repayment risk.[^4]
Access to credit cards and loans. A stronger score may open more options.
Interest rates and borrowing costs. Lower perceived risk may mean lower rates, which affects total cost, not just the monthly payment.
Renting a home and other applications. Some landlords and service providers may run a credit check, with your consent.
Insurance, employment and credit checks. Rules vary by province and by organization: most provinces require your consent before a credit check, while a few require only that you be notified.
Why a good score does not guarantee approval. Affordability, income stability and lender policy all matter.
What credit score is needed for a credit card?
There is no single minimum score for every credit card in Canada. Criteria vary by issuer, product and applicant circumstances.
Card type | Typical borrower profile | What issuers may expect |
|---|---|---|
| Card type Secured card | Typical borrower profile Building or rebuilding credit | What issuers may expect Often available with limited history; a deposit is usually required |
| Card type Credit builder credit card | Typical borrower profile Thin file or past difficulties | What issuers may expect Lower score ranges may be considered |
| Card type Standard card | Typical borrower profile Established history | What issuers may expect Mid-range scores and steady income are often reviewed |
| Card type Rewards or premium card | Typical borrower profile Longer, stronger history | What issuers may expect Higher score ranges and income tests are common |
What credit score is needed for a secured credit card?
Secured cards are backed by a deposit, so they may be available to people with a low score or no score. Payments are usually reported, which can help build history.
What credit score is needed for a credit builder credit card?
These products are designed for limited credit history. Limits are often small and interest rates may be higher.
What credit score is needed for a rewards credit card?
Rewards cards often sit at the stricter end. Issuers may look for a longer history and may also apply income requirements.
How to check credit card eligibility without affecting your score
Many providers offer eligibility checks that use a soft search. Soft searches do not affect your score, while a full application may record a hard inquiry.
How ClearScore can help compare personalized credit card options
ClearScore shows card options matched to the information in your profile. ClearScore is a credit broker, not a lender. Matches are not approvals, and the lender makes the final decision after its own checks.
What credit score is needed for a mortgage?
Mortgage lenders assess the whole application, including income, debts, down payment, affordability and credit history. There is no universal score threshold, although specific programs set baselines - for example, CMHC mortgage loan insurance requires a minimum credit score for at least one borrower.
Consideration | What lenders may review |
|---|---|
| Consideration Credit history | What lenders may review Payment record, length of history, recent inquiries |
| Consideration Income and employment | What lenders may review Stability and verifiable earnings |
| Consideration Down payment | What lenders may review Size and source of funds |
| Consideration Debt levels | What lenders may review Existing payments relative to income |
| Consideration Insured vs uninsured | What lenders may review Mortgage default insurance rules may apply where the down payment is under 20% |
A stronger credit profile may support approval and may influence the rate offered. Mortgage shopping can create inquiries, and scoring models often treat several mortgage quotes within a short window as a single search. Errors on your report, your current balances and recent credit applications can all affect how a lender sees an application.
What is a good credit score in Canada?
Scores from roughly 660 upward are often described as good, and higher ranges as very good or excellent. These are general categories, not guarantees.
Approval with a lower score is possible, depending on the product, the lender and your wider circumstances. It is also worth remembering that a high score does not always mean strong financial health. Someone may have an excellent score and little savings, so treat the number as one measure among several.
How to check your credit score and credit report
You can request your credit report and score from Equifax Canada and TransUnion Canada.[^1] Reviewing both can help you spot discrepancies, because each file may hold different information.
Equifax and TransUnion. Both offer online access and other request methods. Both Equifax Canada and TransUnion Canada provide your credit report free on request, while free access to your score varies and paid products may bundle scores and monitoring.
What to look for. Check your personal details, every account listed, balances, payment markers, inquiries and anything in collections.
ClearScore. ClearScore provides free access to your credit report and score with ongoing monitoring and alerts when certain things change. It shows reported information; it does not control what lenders report.
Monitoring and fraud. Alerts may help you notice an unfamiliar account or application sooner, which can be an early sign of identity theft.
Checking your own report or score is a soft check and does not lower it.
How to read your credit report
Personal information. Name, past addresses and employment details. Errors here may indicate mixed files.
Credit accounts and payment history. Each account with its limit, balance and payment record.
Credit inquiries. Hard inquiries from applications and soft inquiries from your own checks.
Collections and public records. Unpaid debts sent to collections, plus items such as bankruptcies or consumer proposals.
Consumer statements. A short note you may add to explain your situation.
Why bureaus differ. Different lenders, different reporting dates, different models.
How to improve your credit score
Pay every bill on time. Automatic payments or reminders can help.
Credit utilization. Using a modest share of your available credit can help.
Paying more than the minimum. This reduces balances faster and lowers interest costs.
Limit unnecessary credit applications. Apply when it fits your plans.
Older accounts. Length of history can help.
Check reports for errors and fraud. Challenge anything that looks inaccurate.
Build positive history gradually. Small, steady habits compound.
Use ClearScore's personalized tips. ClearScore offers guidance based on your report, which may help you decide where to focus. It is general information, not personalized financial advice.
How long does it take to improve a credit score?
There is no fixed timeline. Improvement depends on what caused the lower score, whether the reporting is accurate and how consistent your habits are.
On-time payments are usually reported on your lender's monthly reporting cycle rather than the moment you pay, so a steady record builds month by month. Reducing high balances may be reflected after your lender's next report. Retention periods vary: late or missed payments can stay on file for up to six years, a consumer proposal for three years after it is paid off or six years after it is signed (whichever comes first), and a first bankruptcy usually for six years after discharge, so rebuilding usually happens gradually rather than quickly.
What to do if there is an error on your credit report
Common errors include accounts that are not yours, wrong balances, payments marked late in error, duplicate entries and outdated personal details.
Contact the credit bureau that shows the information and open a dispute.
Contact the lender or organization that reported the information and ask it to correct the entry with the bureau.
Keep copies of statements, cheques or letters that support your case.
Check back once the review is complete, and check the other bureau too.
If you suspect identity theft, report it to the bureaus, your lenders and the Canadian Anti-Fraud Centre, and consider asking for a fraud or security alert on your file. Accurate information cannot be removed just because it is negative, but you can challenge anything you believe is inaccurate.
Frequently asked questions about credit scores in Canada
What is a credit score?
A three-digit number based on your credit report that helps lenders estimate how likely you are to repay borrowed money.[^1]
What is a credit score in Canada?
The same idea, shown on a scale that generally runs from 300 to 900 and produced by bureaus such as Equifax and TransUnion.[^3]
What is the highest credit score in Canada?
Scores commonly top out at 900, although very few people reach it.
Is a 700 credit score good in Canada?
It usually falls in the good range, though each lender sets its own criteria.
Does checking your own credit score lower it?
No. Checking your own report or score is a soft check and does not affect it.
Does paying off a credit card improve your credit score?
It may help by lowering your utilization, depending on your other accounts and when your lender reports.
How often should you check your credit score?
Many people review theirs every few months, or more often if they are planning to apply for credit.
Can you have a credit score without a credit card?
Yes. Loans, lines of credit and some other reported accounts can build a history.
How long do negative items stay on a credit report?
Often around six years for many items, depending on the bureau, the item and provincial rules.
Can ClearScore help improve your credit score?
ClearScore can help you see and track your credit report and score and offers general guidance. It cannot change what lenders report or promise a particular result.
Key takeaways: understanding your credit score
Your credit score is a three-digit summary of information in your credit report, used by lenders in Canada alongside other details when they assess an application.[^4] Payment history, credit utilization, length of history, credit mix and recent inquiries are the usual factors.[^3] There is no single score required for a credit card or mortgage, because lenders weigh the full picture.
The practical next step is simple: check your credit report and score, review every entry, and build steady habits over time. You can sign up with ClearScore for free to see your credit report and score, track changes and get personalized guidance on the areas you may want to focus on.
[^1]: Financial Consumer Agency of Canada, "Credit report and score basics" - https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/credit-report-score-basics.html
[^2]: Financial Consumer Agency of Canada, "Order your credit report" - https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/order-credit-report.html
[^3]: Financial Consumer Agency of Canada, "Financial basics: credit" - https://www.canada.ca/en/financial-consumer-agency/services/financial-basics/financial-basics-videos/financial-basics-video-credit.html
[^4]: CBC News, "Credit score never checked by majority of Canadians" - https://www.cbc.ca/news/canada/british-columbia/credit-score-never-checked-by-majority-of-canadians-bmo-report-1.3054523
This article provides general information only and does not constitute financial advice. Individual financial circumstances vary, and you may wish to seek independent advice before making financial decisions. Information is accurate at the time of writing and may change.
Tom Markham
Chief Commercial Officer at ClearScore
27 October 2026
14 min read
Contents
Key takeawaysCredit score in shortWhat is a credit score?How do credit scores work?How is a credit score calculated?What affects your credit score?What is the importance of a credit score?What credit score is needed for a credit card?What credit score is needed for a mortgage?What is a good credit score in Canada?How to check your credit score and credit reportHow to read your credit reportHow to improve your credit scoreHow long does it take to improve a credit score?What to do if there is an error on your credit reportFrequently asked questions about credit scores in CanadaKey takeaways: understanding your credit scoreMeet the author
Chief Commercial Officer at ClearScore
Tom Markham
Tom is Chief Commercial Officer at ClearScore, with over 18 years in financial services. He leads partnerships that help millions get access to the right credit, and writes to help you understand your score and find the products that fit.