How to Read a Canadian Credit Score

The two Canadian credit reporting bureaus, Equifax Canada and TransUnion Canada, use a formula, based on many factors, to determine your credit score. Important factors include payment history, outstanding debts, type of credit (loans and credit cards) and credit reference inquiries. Get your scores from the credit reporting bureaus. Once you have your Canadian credit scores, you need to understand how to read them.

Instructions

1

Get a copy of your credit score from Equifax Canada and TransUnion Canada (see Resources). Apply online to get instant access to your Canadian credit score. Follow the online instructions and make your payment. Fees may change and may be different in certain provinces. Your details will be verified. You will receive login and password instructions.

2

Check your credit report for errors as these affect your Canadian credit score. Report errors to the credit reporting bureau to get them rectified (see Resources).

3

Check through the payment history and public record sections. These are the main two sections used to formulate your Canadian credit score.

4

Check your credit score. It ranges from 300 to 900. Each credit reference bureau uses slightly different models for scoring, but the results are similar. If your score is between 300 and 450 it is low and may result in difficulty getting credit. Scores between 450 and 600 are acceptable to lenders, but caution is exercised when you apply for credit. If your score is between 600 and 750 you are good for credit. This range is the average for most Canadian citizens. Scores above 750 are hard to achieve. You will need to have an exemplary credit record spanning many years.