Is 700 a Good Credit Score in Canada?

Your credit score is one of the most important factors lenders consider when reviewing your credit report and loan application. But what exactly is a good credit score in Canada? Is 700 considered good? Let’s find out.

What is a Credit Score?

A credit score is a three-digit number that gives potential lenders an idea of how likely you are to repay a loan or credit card debt. The higher the number, the lower the risk.

Credit scores in Canada range between 300 and 900. They are calculated based on your credit history, including

• Payment history – Do you pay your bills on time? Late payments can lower your score.
• Credit utilization – What percentage of your available credit are you using? The lower the better.
• Length of credit history – How long have you had access to credit? A longer history is better.
• New credit and inquiries – Opening lots of new accounts can lower your score.
• Credit mix – Having different types of credit (credit cards, loans, etc.) can help your score.

There are two major credit bureaus in Canada that calculate credit scores Equifax and TransUnion. While they use similar scoring models the scores they calculate may differ.

What is Considered a Good Credit Score in Canada?

In general, a FICO score above 670 and below 900 is considered good in Canada. Here is a breakdown of the credit score ranges:

• 800-900: Excellent
• 740-799: Very Good
• 670-739: Good
• 580-669: Fair
• 300-579: Poor

According to Equifax, a good credit score is between 660-724. A score between 725-759 is very good, and 760+ is excellent.

Is a 700 Credit Score Good in Canada?

Yes, a credit score of 700 is generally considered good in Canada. It means you have a low-risk credit profile.

With a 700 score or higher, you should be able to qualify for prime lending rates from banks and credit unions This includes the best rates for mortgages, car loans, lines of credit and credit cards

A 700 credit score indicates that you have a proven ability to manage credit responsibly. You pay your bills on time and keep your credit balances low compared to your limits.

While it’s good, a 700 score is still short of “excellent.” There’s room for improvement to reach the 750+ range for the very best rates.

How to Improve Your Credit Score from 700

If your goal is to improve your credit score from the 700 level, here are some tips:

• Pay all bills on time. Set up automatic payments so you never miss a due date. Payment history makes up a major part of your credit score.

• Keep credit card balances low. Experts recommend keeping utilization below 30%. Pay off cards in full each month if possible.

• Avoid applying for new credit. Each application causes an inquiry on your report, which could dip your score.

• Check your credit report for errors. Mistakes on your report can unfairly lower your score. Dispute any inaccuracies.

• Build your credit history. The longer your history, the better. Keep your oldest accounts open and in good standing.

With diligent credit management, you can improve your 700 score. It takes time, but getting into the 750-800 range will help you qualify for the very best rates.

Factors That Offset a 700 Credit Score

While 700 is generally considered a good score, there are some negative factors that could offset it:

• High utilization – Maxing out cards or having high balances close to your limits.

• Short credit history – Thin credit files can negatively impact scores.

• Recent missed payments – Even one 30-day late can significantly hurt your score.

• High number of new accounts – Too many new credit inquiries in a short period can be a red flag.

• High mix of revolving credit – Having mostly credit cards and little installment loan history.

• No credit mix – Not having different account types can negatively impact thin credit files.

Even with a score above 700, any of those factors could make you less attractive to lenders compared to other applicants.

Maintaining and Monitoring Your 700 Credit Score

Once you’ve achieved a 700 credit score, you’ll want to monitor it regularly and maintain careful money management habits. Here are some tips:

• Check your scores every three to six months to catch any sudden drops.
• Pay all bills on time, including utility bills. Payment history is critical.
• Keep credit card balances as low as possible, below 30% at the very most.
• Live within your means. Don’t take on debt you can’t comfortably repay.
• Apply for new credit only when needed to avoid unnecessary inquiries.
• Review all loan terms carefully and borrow only what you can afford.
• Monitor your credit report for identity theft and report any suspicious activity.

A 700 credit score is in the good range, but active monitoring and diligent money management will help you maintain or improve it over time.

The Takeaway

A credit score of 700 is considered good in Canada. It shows lenders that you are a dependable borrower with a low risk of default. With a 700 score, you should qualify for competitive interest rates from prime lenders.

While good, a 700 score still has room for improvement. Scores above 750 will help you land the very best rates. Monitor your credit, practice good money habits, and your 700 score will soon reach the “very good” and “excellent” ranges.