According to the Financial Consumer Agency of Canada, your credit score in Canada is calculated by two credit bureaus: TransUnion and Equifax. Your credit report will also contain identifying information such as where you live that does not affect your credit score.
Factors
There are several factors that affect your credit score in Canada: how well you have made payments in the past, how many judgments against you are on your credit report, how much money you owe, how long your account history is, and how many times your credit report has been pulled recently and the variety of credit you have used.
Purpose
The purpose of a credit score is to determine your creditworthiness so lenders know how risky it is to lend you money and how likely you are to pay them back.
Range
Credit scores in Canada range from 300 to 900, with higher scores better. You will usually need at least a score of 500 to qualify for a mortgage, with scores of 680 and up being better.
Effects
The higher your credit score, the more likely you are to be approved for loans and the lower the interest rates you will pay on those loans.
Time Frame
The amount of time certain financial events remain on your credit report and affect your credit score vary depending on which credit bureau you are using and which province you live in.
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