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Your Path to Financial Freedom

What is a Credit Score?

Before we dive in, let's get back to basics. Your credit score is like a report card for your financial behaviour. Yes, it’s true that a single sheet of paper can’t decide your future, but this report card definitely tells a lot about your financial performance. It's a three-digit number that reflects your creditworthiness and how likely you are to repay your debts on time. So, we will further talk about what is considered to be a good credit score in Canada. The range for credit scores typically goes from 300 to 900 in Canada, and the higher, the better!

Importance of Credit Score

Now, you might wonder why does this little number matter so much? Well, let me tell you, it matters a whole lot! Your credit score can influence various aspects of your financial life, including:

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What is a Good Credit Score in Canada?

Alright, let's talk numbers! In Canada, the most famous credit score range chart available is provided in the Equifax highlights as follows:


  • Excellent: 800-850

  • Very Good: 740-799

  • Good: 670-739

  • Fair: 580-669

  • Poor: 300-579


If your credit score falls into the "Good" or higher category, congrats! You're on the right track. But if you're below that, don't worry, we've got some tips to help you improve as you read on!

How to Check Your Credit Score?

Curious about your credit score? Checking it has never been easier! In Canada, you can request your credit report for free from two major credit bureaus: Equifax and TransUnion. Remember, checking both reports is crucial since they might have different information.


Head over to their websites or give them a call, and they'll guide you through the process. Checking your credit score won't affect it, so no need to fret about that!


Another way you can do that is by simply installing your bank’s mobile application and looking for the option to check your credit score. Popular financial institutions in Canada, such as RBC, Scotiabank, CIBC, and BMO provide you with your credit score through your account dashboard.

Tips for Maintaining a Good Credit Score

  • Pay Your Bills on Time: Yes, we know that you’ve heard about it earlier. But this is a golden rule! Your payment history has a massive impact on your credit score. Set up reminders or automatic payments to make sure you never miss a due date.


  • Keep Credit Card Balances Low: High credit card balances relative to your credit limit can negatively affect your score. Aim to keep your credit card utilization below 30% to boost your score. The results won’t be visible overnight, but doing this will definitely help you in the long run.

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What is a Bad Credit Score?

A bad credit score can be a tough pill to swallow. It might result from late payments, high debts, or even bankruptcy. Having a bad credit score can limit your financial options, leading to higher interest rates or loan rejections. But fear not, you can always work towards rebuilding your credit or look for financial institutions other than banks which might be willing to understand your situation and set yourself up for a better financial future.

Final Thoughts

Okay! That was a lot of credit talk, right? Remember, good credit is like maple syrup for your financial pancakes—it makes everything sweeter! So, keep an eye on your credit score, make wise financial decisions, and watch your credit flourish like a beautiful Canadian maple tree.


Wishing you all the best on your journey to financial freedom! Until next time, take care!

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Putting Canadians on a path to a better financial future

When banks aren’t an option, we can help you get approved for the loan you need today.

400+

locations in

Canada

800K

customers

served

93%

satisfaction

rate

60%

of customers improve

their credit score

1in3

customers graduate to

prime rates

Putting Canadians on a path to a better financial future

When banks aren’t an option, we can help you get approved for the loan you need today.

400+

locations in

Canada

800K

customers

served

93%

satisfaction

rate

60%

of customers improve

their credit score

1in3

customers graduate to

prime rates

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Have questions? We can help.

What credit score do I need for easyfinancial?

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This is determined on a case-by-case basis. We use many factors to approve applicants for a loan, including monthly income and credit score. We factor in your debt-to-income ratio (50%), debts in collections, car payments, and monthly debt obligations. Those with bad credit (300-720) are encouraged to apply.

What is a soft inquiry and how is it different than a hard inquiry?

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A soft inquiry is when your credit report is pulled for informational purposes and does not affect your credit score. A soft inquiry is simply a review of your credit report that's used to determine if you are eligible for a pre-approved offer and may be used to verify who you are.  When a company conducts a soft inquiry, this is only visible to you, and is not seen by other lenders therefore it will not negatively affect your credit score. 

A hard inquiry is when a credit report is requested from the credit bureau for the purpose of evaluating you as a borrower. A hard inquiry can affect your credit score and can be seen by other lenders. However, keep in mind that hard inquiries are only one of the five major factors that help determine your credit score.  Other factors such a payment history and credit utilization play a much bigger role in determining your credit score. 

What documents are needed to get an approval?

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We require the following documents:

2 recent pay stubs

  1. Last 90 days of banking information 

  2. 1 recent bill addressed to your current home 

  3. A piece of government photo ID