Part of the journey towards financial freedom is knowing your credit score. Have you ever wondered what the highest credit score in Canada is?
The highest possible credit score you can get in Canada is 900. If you can reach this, it shows financial institutions that you are a trustworthy and very low-risk borrower.
Let’s take a deeper look at how you can raise your credit score.
What is the Highest Credit Score in Canada?
As mentioned, the highest credit score in Canada is 900.
Getting a 900 is ideal, but scoring anywhere between 780 and 900 is still excellent in the eyes of financial institutions.Â
If your credit score is anywhere between 700 and 780, this would still be viewed as a good score by banks, so you shouldn’t have any trouble doing business with them.
The higher your credit score, the more it shows lenders that you are likely to repay your debt on time.
What is the Average Credit Score in Canada?
As per Transunion, one of the two top credit bureaus in Canada, 650 is the average credit score of Canadians.
While a higher credit score would definitely be great, a credit score of 650 is still fair and is still seen as acceptable by some lenders.
Average Canadian Credit Score By Age
As per Equifax, the second leading credit bureau in the country, Canadians with a credit score of 750 or better are usually 65 years of age or even older.
In contrast, Canadians with a credit score of 520 or lower are typically 25 years of age or younger.
However, it doesn’t mean that if you’re 25 or younger, you’re automatically the wrong person to lend money to.Â
It just so happens that it takes time to build a good credit score, and mature consumers are more likely to have better credit simply because they’ve had the time to build it up.
Is a 900 Credit Score Possible?
While getting a credit score of 900 is indeed a great goal to have, it’s extremely rare to achieve it.
This is because there are various factors and formulas that come into play to calculate your credit score.
On the positive side, you don’t necessarily need to have a perfect score of 900 to gain access to the best credit products.
A credit score of 750 or better should allow you to secure a loan with most lenders.
What Does a 900 Credit Score Mean?
If you are able to get a credit score of 900, this means that you have passed or even exceeded all the credit qualifications.
Lenders will be more than willing to help you secure a loan because they trust, based on your credit score, that you have good financial habits and that you will repay them on time.
When applying for loans, having a 900 credit score will allow you to pick and choose the best options out there with the most competitive terms and rates.
In addition to that, having this high of a credit score will also give you access to top-tier credit cards available in the market.
How to Get a Perfect Credit Score in Canada
Here are a few of the things you can do to achieve a perfect credit score in Canada:
Pay Your Bills on Time
Paying your bills on time shows lenders that you are reliable, which in turn will positively impact your credit score over time.
Check Your Credit Regularly for Errors
You never know when errors may occur. Possible inaccuracies can negatively impact your credit score, so it’s best to stay on top of this regularly.Â
Keep a Low Credit Utilization
Having low credit utilization means using your available credit responsibly. Your credit score may be negatively affected if you have high credit utilization.
Don’t Apply for Too Many New Credit Cards
Opening several new credit cards can potentially signal that you are taking on excessive debt or may show financial instability.
Keep Older Credit Cards Open
An important factor in your overall credit score is the length of your credit history. Having old accounts that have been well-managed will impact your credit score positively.
How to Check Your Credit Score for Free
Now that you understand the importance of knowing your credit score, let’s take a look at how you can check it for free:
Borrowell
Borrowell is a platform in Canada where you can get your credit score for free.
Once you’ve created an account on this platform, you will be able to download your Equifax credit report for no cost. This is updated every week.
You can also check your credit score at any time you want. Based on your credit profile, you will get tailored suggestions of financial products that best suit you from their 75+ partners.
Clearscore
Clearscore is another platform in Canada where you can access and monitor your financial information, which includes your credit score, and open banking data for free.
They are dedicated to making a positive impact on the financial well-being of their users.
With Clearscore, the platform will help you find mortgage, loan, and credit card deals you qualify for based on your credit score.
You will also gain access to their marketplace, which features deals from the leading lenders in Canada. On top of that, you will also receive tailored suggestions across their available credit deals.Â
Loans Canada
Loans Canada, similar to the two platforms discussed above, is another great option where you can check your credit score for free.
On this platform, you can also find the best loans and rates in the country. The services available on Loans Canada range from:
- Personal Loans
- Debt Relief
- Car Loans
- Business Loans
- Free Credit Score Checking
- Credit Building
- Credit Cards
- Home Equity Loans
Loans Canada is also considered the biggest lender network in Canada, where you can compare the products of different lenders before sending in your application.Â
Loans Canada
Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.
Interest rate: 2.99% to 46.96%.
Loan term: 4-60 months.
Maximum loan amount: Up to $50,000.
FAQs
Do you still have further questions? Let us answer them for you.
For you to score a 900 on your credit score, you must have a perfect record when it comes to sending in your payments on time and have a history of no credit card debt. You will also need to stay patient, as it takes many years for anyone to build a perfect credit score.
No one has a 950 credit score, as 900 is the highest credit score you can get in Canada. A credit score of 800 is not rare but is definitely not easy to attain as well. This is an excellent score which means you will also need to have a good financial record.Â
To build your credit fast in Canada, you can follow the things we suggested earlier, namely:
-Pay Your Bills on Time
-Check Your Credit Regularly for Errors
-Keep a Low Credit Utilization
-Don’t Apply for Too Many New Credit Cards
-Keep Older Credit Cards Open
It is important to note that a good credit score is not built overnight; you will need to have a good financial track record to achieve this.Â
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