Canadian Credit Score 101 for Newcomers (2026)

Key takeaways

Scores usually range from 300 to 900; higher is better
Equifax and TransUnion each keep a separate file, so you can have two different scores
Equifax says payment history is about 35% of a score and credit used versus available is about 30%
Equifax calls 660 to 724 good, 725 to 759 very good, and 760+ excellent
Checking your own score never lowers it; credit applications can

What is a credit score?

A credit score is a number that shows how likely you are to repay money you borrow. The Financial Consumer Agency of Canada (FCAC) says scores usually range from 300 to 900, and a higher score is better.

Your score is built from your credit report. The report is the list of your credit accounts and how you paid them. Canada has two main credit bureaus: Equifax and TransUnion. Lenders report to one or both. That is why your Equifax score and TransUnion score can be different.

There is also more than one scoring model. Equifax says scores can differ between bureaus and between models. A lender may see a different number from the one in your app.

Your score from another country usually does not move to Canada. Most newcomers start with no Canadian file. Some options exist to share foreign history; see transferring your foreign credit history.

What goes into your score?

Bureaus do not share their exact formulas. Equifax publishes an approximate breakdown, and TransUnion lists factors in rough order of importance.

Factor	Equifax’s approximate weight	What it means
Payment history	About 35%	Do you pay on time? Late payments hurt more if they are longer or happen more often.
Credit used vs. available	About 30%	How much of your limits you use. Lower is better.
Credit history	About 15%	How long your accounts have been open.
Credit mix	About 10%	Different types, such as a card, a car loan or a line of credit.
Inquiries	About 10%	How often you apply for new credit.

TransUnion names the same ideas: payment history first, then amount owed, types of credit, new loans and length of history. It gives no percentages. FCAC also says payment history is the most important part of your score.

What is a good credit score in Canada?

Equifax gives these general ranges. It notes that scoring models vary.

Score	Equifax description
760 and up	Excellent
725 to 759	Very good
660 to 724	Good
560 to 659	No label; Equifax says scores below 660 may be less likely to get better loan terms
Below 560	Poor

Equifax says lenders generally see 660 and up as lower risk. Each lender sets its own rules, so a score is one part of the decision. Income and your relationship with the bank also matter.

What is on your credit report?

According to FCAC, a Canadian credit report can include:

Personal details: name, date of birth, current and past addresses, and employers.
Credit accounts: credit cards, loans, lines of credit and retail cards, with balances and whether you paid on time.
Mortgages and other accounts: mortgages, and sometimes phone, internet and utility accounts.
Negative items: NSF (bounced) payments, debts sent to collection agencies, bankruptcy or court decisions.
Inquiries: lenders who checked your report.

Bureaus update reports at least once a month. You can see your own report for free. See how to get your free Equifax and TransUnion report.

Who can check your credit?

FCAC lists banks, credit unions, card companies, car-leasing companies, phone and internet providers, utilities, insurers, landlords and some employers. They use it to decide whether to lend, at what rate, or whether to rent to you or hire you.

In most provinces they need your consent first. In Nova Scotia, Prince Edward Island and Saskatchewan, they only need to tell you.

There are two kinds of checks:

Hard inquiry: when you apply for a card, loan or mortgage, and for some rental or job applications. This can lower your score.
Soft inquiry: when you check your own report, or a company reviews an account you already have. This does not affect your score.

Landlords often ask about credit. Newcomers can read renting without a guarantor or Canadian credit.

How long does information stay on your report?

From FCAC’s summary, as of October 10, 2026:

Item	How long
Late or missed payments on cards and loans	Up to 6 years
Lender inquiries	3 years at Equifax; 6 years at TransUnion
Closed accounts paid as agreed	Up to 10 years at Equifax; up to 20 years at TransUnion
Bankruptcy (first)	Usually 6 years after discharge; TransUnion keeps it 7 years in Newfoundland and Labrador, Ontario, PEI and Quebec
Consumer proposal	3 years after debts are paid, or 6 years after signing, whichever comes first

Good history stays for years too. That is why your first card matters: it becomes your oldest account.

What makes your score go up or down each month?

Bureaus update your file at least once a month, as lenders send new information. FCAC lists the habits that move a score:

Can lower your score	Can raise your score over time
A missed or late payment	Paying on time, every month
A balance close to or over your limit	Keeping balances under 30% of your limits
Several credit applications close together	Applying only when you need credit
Carrying a lot of debt	Paying debt down
A debt sent to collections	Keeping older accounts open and active

FCAC advises keeping use low even if you pay in full each month. With a large purchase, paying part of it before your statement date keeps the balance on your statement lower. Plan your numbers with the credit utilization calculator.

Common myths newcomers hear

“Checking my score lowers it.” No. FCAC and TransUnion both say your own checks have no effect.
“A debit card builds credit.” No. Debit spends your own money and is not credit.
“Paying in full means my balance does not matter.” Not quite. FCAC says to keep use low even if you pay in full, because lenders may see heavy use as higher risk.
“Closing old cards helps.” Often the opposite. FCAC says closing an older account can shorten your history and lower your available credit.
“My income is on my report.” FCAC’s list of report contents does not include income. Lenders ask for it separately.

Ready to start? Follow the 12-month credit building plan, and avoid the most common credit mistakes.

Common questions

What credit score do newcomers start with?

Most newcomers start with no Canadian score at all, not a low score. A score appears after you use credit that reports to the bureaus for a few months. Equifax says about three months of use, or four to five months in total.

Why are my Equifax and TransUnion scores different?

Lenders may report to only one bureau, and each bureau uses its own scoring models. Small differences are normal.

What score do I need for a credit card?

Newcomer cards from the big banks do not need a Canadian score. For other cards, each issuer sets its own rules. Equifax says lenders generally see 660 and up as lower risk.

Does my credit score from India or the Philippines count in Canada?

Usually not. Canadian lenders use Equifax and TransUnion reports. A few lenders use services that read foreign credit reports; see our guide on transferring foreign credit history.

How often does my credit score change?

FCAC says bureaus update reports and scores at least once a month, as lenders send new information.

Sources

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.

Canadian credit score 101 for newcomers