700 Credit Score Canada: Your Credit Card and Loan Options

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by Enoch Omololu, MSc (Econ)

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A 700 credit score is considered “good” in Canada. You are able to qualify for personal loans, credit cards, and mortgages, however, you may not get the most competitive rates.

While a 700 credit score is a lot better than having a 400, 500, or 600 credit score, there is room for improvement if you want to enjoy the best lending terms.

Read on to learn about what a credit score of 700 means and how you can continue to improve your creditworthiness.

What Does a 700 Credit Score Mean?

From looking at how credit scores are ranked in Canada, a credit score of 700 means you are in the “Good” category.

It also means you have a higher-than-average credit score which Borrowell puts at 672.

With a credit score of 700, you can qualify for a wide range of personal loans and other lending products.

On the flip side, this credit score also means you have room to improve your credit management. Perhaps you have a limited history or have missed making some payments on time.

Below are Canadian credit score ranges:

  • 800-900: Excellent credit score
  • 720-799: Very good credit score
  • 650-719: Good credit score
  • 600-649: Fair credit score
  • 300-599: Poor or bad credit score

You can check your credit score for free here.

Credit Cards For 700 Credit Score

You can qualify for several credit cards with a 700 credit score or higher. While some premium rewards credit cards require a higher score, you have options.

No-fee cash back credit cards you can consider include:

Tangerine Money-Back Credit Card: You can apply with a 600+ credit score and it has no annual fee. Learn more in this review.

Tangerine Money-Back Credit Card

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.

Welcome offer: Get an extra 15% cash back on up to $1,000 in spending in the first 2 months ($150 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

Neo Financial Mastercard: Earn up to 5% cash back and pay no annual fee. Learn more in this review.

Neo Mastercard (Standard)

Rewards: Average of 5% cash back at partners and a minimum of 1% cash back across all purchases

Welcome offer: Get 15% cash back on your first purchases; plus a $25 welcome cash bonus.

Interest rates: 19.99% – 24.99% on purchases; 21.99% – 26.99% for cash advances.

Annual fee: $0

SimplyCash Card from American Express: Earn 1.25% unlimited cash back on all purchases. This card has no annual fees and you can learn more here.

SimplyCash Card from American Express

Rewards and benefits: Earn 1.25% cash back on all purchases; travel accident insurance.

Welcome offer: 4% cash back in your first 6 months (valued at $250).

Interest rates: 19.99% on purchases and 21.99% on cash advances.

Annual fee: $0

700 Credit Score Loan Options

Compared to someone with a lower credit score (300-650), you can generally qualify for personal loans and auto financing with a credit score of 700 and above.

This score also gives you a chance with banks and credit unions that have more stringent conditions.

You can find loans using credit comparison sites like Loans Canada and LoanConnect.

Loans Canada: Use this platform to find loans for credit building, auto financing, mortgage refinancing, debt relief, and more.

  • Loan amount: $500 to $50,000
  • Loan APR: 1.99% to 46.96%
  • Loan term: 4-60 months

Visit Loans Canada.

LoanConnect: This loan comparison engine gives you access to multiple lenders in one place. Pre-approval takes about 1 minute and you can receive funding within 1-2 business days.

  • Loan amount: Up to $50,000
  • Loan APR: 5.75% to 46.96%
  • Loan term: 6-60 months

Visit LoanConnect or read the review.

CarsFast: This platform by LendingArch is a great way to get a car loan with a 700 credit score. You will need to show proof of income and reside in ON, AB, or B.C.

  • Loan amount: Up to $75,000
  • Loan APR: Varies
  • Loan term: 12-96 months

Visit CarsFast.

700 Credit Score Mortgage Rates

You need a minimum score of 600 to qualify for federal mortgage insurance through the Canada Mortgage and Housing Corp. (CMHC).

That said, most lenders are looking for a credit score of at least 680, and the higher you go, the better your chances of qualifying.

For the very best mortgage rates, you should aim for a 750+ credit score.

In addition to your credit score, you also need to pass a stress test and show that your income and expenses have a healthy ratio (Gross debt service ratio and total debt service ratio).

You can start your search for a mortgage rate.

How To Improve Your Credit Score

Improve your 700 credit score fast with these strategies:

  • Make payments on time and avoid late and missed payments.
  • Lower your credit usage rate to 30% or lower. For example, if your credit limit is $1,000, your credit balance should not exceed $300.
  • Limit your applications for new credit cards and loans.
  • Improve your credit mix by holding both revolving credit (credit cards) and installment loans (personal loans, auto loans, etc.).
  • Check your credit report for errors and dispute inaccurate information.
  • Use a credit monitoring service to track your credit score and report.
  • Increase your credit limit to lower your credit utilization rate.

700 Credit Score FAQs

How much can I borrow with a 700 credit score?

How much you can borrow from a lender depends on several factors, including your credit score. They also look at your income, expenses, and other credit factors. How much you can borrow will vary from lender to lender.

Is 700 a good credit score?

Yes, a 700 credit score falls in the good range and it is higher than the average credit score in Canada.

How long does it take to get your credit score from 600 to 700?

It can take a few months to several years depending on the type of negative information on your credit report.

How can I increase my credit score above 700?

You can increase your credit score by paying bills on time, using 30% or less of your credit limit, not applying for too many credit cards and loans, increasing your credit limit, and disputing errors on your credit report.

Related:

Best Credit Offers in August 2022

Earn up to 15% cash back for a limited time ($150 bonus)

One of the best no-fee credit cards in Canada.

Get 2% unlimited cash back on up to 3 purchase categories.

Get 0.5% unlimited cash back on all other purchases.

Get 15% bonus cash back in first 2 months ($150 value).

1.95% balance transfer offer for 6 months.

Get up to 5% cashback and grow your savings ($20 bonus)

Free prepaid reloadable Mastercard (use referral code CASHBACK during signup for $20 free).

Free budgeting app with automatic savings features.

Access to a portion of your paycheque 3 days early.

1.20% savings interest on every dollar balance.*

Compare the best personal loan rates in Canada

Get the best rates from multiple lenders.

Borrow up to $50,000 regardless of your credit score.

Pre-approvals are available in as fast as 5 minutes.

Low-interest rates start at 1.99% and terms from 4-60 months.

The NeoCard pays up to 5% cash back at select retailers

Get a $25 bonus when you apply for the Card.

Up to 5% cash back at participating stores.

No annual account fees and 1% minimum cash back guaranteed.

Guaranteed instant approval credit card.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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  • Earn 0.50% cash back on all purchases and up to 5% at select retailers.
  • $20 welcome bonus.
  • 1.20% savings interest on your balance.*
*Limited time offer. Terms and conditions apply.
Best No Annual Fee Prepaid Cash Back Card
Best No Annual Fee Prepaid Cash Back Card
Get 0.50% cash back on all purchases and up to 5% at some retailers. $20 welcome bonus.
*Limited time offer. Terms and conditions apply.
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