Yes, 650 is a good credit score in Canada. Anything below 650 is classified as a fair credit score.
What is a credit score in Canada?
A credit score is a three-digit number that ranges from 300 to 850. The higher score you receive, it means that you are trustworthy by the banks and mortgage companies to lend money to you. The three main credit bureaus are Equifax, Experian, and TransUnion. The moment you apply for a loan, the lending service provider assesses your credit score and your credit report, to analyse your credit history and discipline. Based on this score, the lender determines if you are qualified for the loan or not.
How is credit score determined in Canada?
There are some major factors that influence your credit score. They are as follows. We have also mentioned their percentage of importance is calculating your credit score.
- Your loan repayment history. (35%)
- The total amount of debts you have (in dollar value). (30%)
- The period and length of your credit history. The longer you have had a good credit repayment history, the better your credit score is. (15%)
- The types of loans you have. It must be mixed, such as home loan, credit card loan, personal loan, car loan etc (10%)
- The details of any recent loans applied for. (10%)
What is the credit score ranges in Canada?
We have illustrated the range of credit scores below from poor to excellent:
Good credit score in Canada
Thus, 650 is a good credit score in Canada. In order to achieve or maintain this score, it is important that you make loan repayments on a timely basis, keep increasing your credits as your income increases, keep your credit cards open, and have a blend of loans. After following this for a time period, it will take a minimum of 6 months to see a change in your credit score.