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The Average Credit Score in Canada is Lower Than You Think

The Average Credit Score in Canada is Lower Than You Think

Credit scores are based on your individual circumstances and payment history but is there an average? Is there an expected average for different ages? Our auto loans team went to find out.


Your credit score will be a crucial factor in the great majority of financial decisions. Whether it be a school loan, auto loan, mortgage, credit card, or another type of debt. They all consider your credit score among other factors when making financing decisions.


How Does a Credit Score Work?


A credit score is a number that ranges from 300 to 900 and represents your credit risk. Lenders use it to determine if you are a reliable borrower who will repay any debt on schedule. The likelihood that you will repay increases with your credit score.


credit score ranges


The more likely you are to repay, the more lenders are willing to work with you and the lower the interest rate you’ll pay.


Your credit score consists of:


Payment history: Your score is influenced by how much debt you have paid off and how often you make on-time payments.

Debt totals: Your credit score may be impacted by the amount of debt you currently hold. Your credit score decreases as your assets increase since lending to you becomes riskier.

Credit history: Your credit score is boosted by the length of time that you have successfully repaid debt. On the other hand, your score will be lower the shorter your debt history is because you are more of an unknown.


Credit mix: Measures the variety of credit you have accessed. The mix factor refers to the many types of debt you have incurred, like car loans, mortgages, and credit cards. The more diverse the blend, the more beneficial the result will be.


how credit score is calculated



What is The Average Credit Score in Canada?


International credit ratings exist, although they are calculated slightly differently in each jurisdiction. Here are our typical results:


  • Under 500 is seen as having poor credit.
  • The typical credit score is 650.
  • 660–734 is considered good credit.Outstanding credit is over 760.


(Source: Equifax)


If you want to know average credit score by age, you have to dig a little deeper.


  • Age 16-25 – credit score of 692
  • Age 26-35 – credit score of 695
  • Age 36-45 – credit score of 705
  • Age 46-55 – credit score of 719
  • Age 56-65 – credit score of 738
  • Age Over 65 – credit score of 750


These average credit scores by age are likely because older people have more of a credit history and learn to be financially sensible. There are exceptions of course, but these are averages.


Credit Scores & Car Loans


As is common knowledge, your chances of being approved for a car loan increase with your credit score. Additionally, the less interest you pay.


You can still receive a car loan even if your credit is bad. It simply means you will likely pay a higher rate and that fewer lenders will be willing to work with you.


We have very rarely encountered situations when someone was denied credit when they needed it. This is particularly true if you engage with our vehicle loan specialists.


Thanks for reading! If you have any more questions about the average credit score in Canada or anything else related to finance, please contact us here.

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