What is a good FICO score in Canada?

Credit Cards
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FICO score is an important parameter to check your credit worthiness. According to the findings of Equifax, a FICO score between 660 and 724 is deemed to be good.

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What is a credit score?

A credit score is a parameter that establishes how financially trustworthy you are. The score is calculated using your credit history, repayment trends and outstanding debts.

FICO score ranges in Canada

FICO score is a three-digit score that is a reflection of your credit worthiness. The scores range from 300 to 900. The two major credit bureaus in Canada are Equifax and TransUnion. Every lender will have its own benchmarks of good, bad, and excellent. However, based on the Equifax parameters, the ranges are as follows:

  • Poor: 300 to 559
  • Fair: 560 to 659
  • Good: 660 to 724
  • Very Good: 725 to 759
  • Excellent: 760 to 900

Average Credit score based on age group

Equifax conducted a survey in 2018 on the Canadian’s average credit scores based on their age and here are the findings:

  • 18 – 25: 692
  • 26 – 35: 697
  • 36 – 45: 710
  • 46 – 55: 718
  • 56 – 65: 737
  • 65 plus: 750

How to maintain a good FICO Score?

We have illustrated a few methods to improve and maintain a good credit score:

  • Take out a blend of loans such as home loans, car loans, education loans, credit cards, etc., Avoid using the same type of credit product for various purposes.
  • Opt for a loan that extends for a longer period and avoid transferring credit balances to new loan products. The longer the loan is and prompt the repayments are, your reliability tends to increase.
  • Do not over exceed your limit, especially with credit cards.
  • Make prompt repayment of dues.

Why is it important to have a good FICO score?

  • If you have a good credit score, you will be considered as a reliable borrower and you might end up obtaining a low-interest rate.
  • It makes your loan application process hassle-free.
  • You may end up getting higher loan limits
  • You can get an extended tenure of the loan

Good FICO score in Canada

The Canadian financial institutions have been relying on the FICO score to evaluate borrowers for almost 20 years and it is essential that you maintain a good FICO score at all times to be able to fund your needs via borrowings, effortlessly.