When you want to borrow money for something like a house, car, or credit line, you should know your credit score. After all, it’s your credit score that lenders use to determine who to loan their money to – and what rates to offer them. Generally speaking, the higher your credit score, the more likely you’ll be to qualify for a good loan.
One of the most important things lenders look at when you apply for loans and credit cards is your credit score. What does a good credit score in Canada look like? Is 650 a good number?
There is a lot to know about credit scores in Canada. This guide will explain what a score of 650 means and what you can do to improve your score.
What is a Credit Score?
It’s a three-digit number that tells lenders how creditworthy you are, or how likely it is that you’ll pay back your debts and make payments on time.
Scores in Canada range from 300 to 900. The better your score, the less risky you are to lenders.
Credit scores are calculated based on your credit history and credit report There are two major credit bureaus in Canada that provide credit reports Equifax and TransUnion,
Your credit report details your history of:
- Loan payments
- Credit card payments
- Mortgage payments
- Any late payments, bankruptcies or collections
Credit bureaus gather this info from lenders and public records. They use it to calculate your score.
What is Considered a Good Credit Score in Canada?
What counts as a “good” score depends a bit on which credit bureau you use.
According to Equifax Canada, here’s how scores break down:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very good
- 800-900: Excellent
So according to Equifax, a “good” credit score falls between 670-739.
Meanwhile, TransUnion has slightly different ranges:
- 300-659: Poor
- 660-724: Fair
- 725-779: Good
- 780-809: Very good
- 810-900: Excellent
For TransUnion, a “good” score is 725-779.
In both cases, a score of 650 would fall below the “good” range.
What is the Average Credit Score in Canada?
According to FICO, the average credit score in Canada is currently 762.
That puts a score of 650 well below average. However, that doesn’t mean a 650 score is terrible. It just means you may not get the best rates or terms compared to folks with higher scores.
The average score also varies a bit by location. Here are the latest average scores by province:
- Alberta: 743
- British Columbia: 752
- Manitoba: 727
- New Brunswick: 721
- Newfoundland and Labrador: 719
- Nova Scotia: 718
- Ontario: 771
- Prince Edward Island: 735
- Quebec: 759
- Saskatchewan: 735
As you can see, a score of 650 would be below average in every province.
Is a 650 Credit Score Good or Bad in Canada?
Now that we’ve covered average scores, is 650 a good or bad credit score in Canada?
The truth is, it’s somewhere in the middle.
According to both Equifax and TransUnion ranges, a 650 score falls into the “fair” category. It’s not excellent, but it’s not poor either.
With a 650 score, you can likely still get approved for loans, credit cards and mortgages – but you probably won’t get the very best rates or terms. Lenders will view you as higher risk than borrowers with scores of 700+.
However, a 650 score means you still have access to credit. It’s not a score that will leave you totally unable to borrow money.
What Can You Get Approved for With a 650 Credit Score?
Here are a few examples of what you can likely get approved for with a credit score of 650:
Credit cards: You can likely get approved for basic credit cards with average interest rates. You may not get premium travel rewards cards with lucrative signup bonuses and perks.
Personal loans: Approval is possible, but interest rates may be higher than with a 700+ score.
Mortgages: You can potentially qualify for a mortgage with a minimum 650 score. However, you’ll likely pay higher interest rates, and you may need to provide a larger down payment.
Car loans: Since the car itself serves as collateral, approval is definitely possible. But interest rates will likely be higher vs. borrowers with excellent credit.
Home equity loans: With sufficient equity in your home, you can likely qualify for a home equity loan or line of credit, which looks more at equity than your credit score.
How to Improve Your Credit Score from 650
If you have a 650 credit score currently, here are some tips to start improving it:
1. Pay all bills on time. Payment history is typically the biggest factor in your credit score. Even one late payment can ding your score, so be diligent about paying on time.
2. Keep credit card balances low. High balances relative to your limit can hurt your score. Aim to keep balances under 30% of your total limit.
3. Limit new credit applications. Each application causes an inquiry on your report, which can lower your score temporarily. Only apply for new credit when needed.
4. Check your credit report for errors. Dispute any incorrect information that could be bringing down your score.
5. Consider secured credit cards. These require a refundable deposit and can help build positive payment history.
6. Ask for credit limit increases. This keeps your credit utilization ratio low as your limits grow.
7. Mix up credit types. Having installment loans like auto loans or mortgages along with revolving credit can help.
With diligence and smart credit use, you can boost your 650 score to 700 and above over time. Be patient and persistent!
The Takeaway: Is 650 a Good Credit Score in Canada?
While a credit score of 650 is below the average Canadian score, it still falls into the “fair” credit tier. A 650 score means you can likely get approved for credit and financing, but may not get ideal rates or terms.
With responsible credit use over time, you can improve your 650 score and access better borrowing options. The key is diligently monitoring your credit report, making payments on time, keeping balances low, and limiting new applications.
If you have a 650 credit score currently, don’t panic – but do make boosting your number a priority. With focused effort, you can lift your score and open up better opportunities.
Is a 650 credit score good or bad?
If you’ve got a 650 credit score, you might be wondering if that’s a good score or a bad score. According to Equifax Canada, one of the country’s two major credit bureaus (organizations that issue credit scores), a 650 credit score falls within the “fair” range.
So, what does that mean? Let’s break it all down.
Credit scores in Canada
Your credit score is a three digit number that ranges from 300 to 900. As you can see, there’s a wide variance and your score is determined by a number of factors. The TLDR is that the higher your score, the more “credit-worthy” you’re determined to be by credit bureaus and, as a result, lenders. A high credit score unlocks a lot of financial opportunities, such as qualifying for cheaper loans, better chances of getting a job – since some employers, particularly those in the financial services sector, check candidates credit scores during background checks – and a higher likelihood of qualifying for a rental home.
Here’s how Equifax rates its credit scores:
- Scores between 300 and 579 are considered poor
- Scores between 580 and 669 are considered fair
- Scores between 670 and 739 are considered good
- Scores between 740 and 799 are considered very good
- Scores between 800 and 900 are considered excellent
The average credit score in Canada, according to TransUnion, is 650. If you’ve got a credit score of 650, that means you fall just below the average credit score in Canada. The good news is there are a lot of things you can do to improve your score. More on that in a bit.
First, though, let’s take a closer look at the average credit scores in some of Canadas major cities.
City Average credit score Vancouver 705 Victoria 694 Calgary 667 Edmonton 649 Saskatchewan 659 Saskatoon 656 Winnipeg 661 Toronto 696 Ottawa 688 Montreal 687 Quebec City 683 Halifax 664 Fredericton 658
As you can see, a 650 credit score is below the average score in each of these cities. There are several reasons why your score may be fair instead of good, like many of these scores.
Is 650 a GOOD Credit Score
FAQ
What can a 650 credit score get you?
Most of the time, a credit score of 650 is considered “fair.” It may not be perfect, but it does open up some financial options.
How to go from 650 to 750 credit score?
6 easy ways to raise your credit scoreMake your payments on time. Set up autopay or calendar reminders. Don’t open too many accounts at once. Get credit for paying monthly bills on time. Dispute any errors on your credit report. Keep your credit utilization rate low.
How common is a 700 credit score?
A 700 credit score is a “good” credit score, and it’s relatively common. While it’s not the average, a 700 score is considered within the range of “good” credit.
How long does it take to go from a 650 credit score to 700?