Unfortunately, your credit score can influence many decisions you make in life. Where you’ll live, what jobs you may qualify for, and even how you get to work can all be influenced by your credit score.
Knowing the average credit score in Canada by age can help you determine if you’re moving in the right direction financially or if a course correction is needed to get you back on track.
Below, we’ll take a look at:
- where in the credit score range you fall,
- what you can and can’t do based on your score,
- if your score is close to where it should be for your age,
- the factors that will affect your credit score,
- tips to improve your credit score, and
- how we can help you if you need it.
In this blog, we’ll assume you already know your credit score. If not, go to the Equifax website and get a free credit report online. If you’d like a more personalized approach, you can contact us for a free consultation.
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Credit Score Range in Canada
Before we get into the average credit score in Canada by age, let’s look at the typical credit score range in Canada. This will give you an idea of whether or not your credit is considered good or bad and what you can accomplish with your credit score.
- 760-900: Excellent – With excellent credit, you should have no problem financing a home or car. You’ll also be offered interest rates far better than your peers. This allows you to purchase a more expensive product while keeping your monthly payments lower.
- 725-759: Good – You’re still doing far better than most Canadians. With good credit, home and car loans should be easy to obtain, and the interest rates you’ll be offered will keep your payments low.
- 660-724: Fair – This fair credit range is where the average Canadian resides. Home and car loans are still feasible. You may have to put more money down to secure the loans, and your interest rates may not be the best, but you’re still in decent financial shape.
- 560-659: Below Average – A below-average credit score is where financial life becomes more difficult. You may not qualify for a mortgage on a home without a sizable down payment. Interest rates on car loans may be too high to afford the car you want, and you’ll probably be declined for credit cards and other unsecured loans.
- 300-559: Poor – A poor credit rating can make reaching your financial goals difficult. Mortgages will be nearly impossible to obtain. Even renting an apartment without a co-signer will be difficult. All but the most predatory car loans will be out of reach, and the only credit cards you’ll be offered will need to be secured by cash.
As you can see, even just a few points up or down on your credit score can have a major effect on your financial life.
Average Credit Score in Canada by Age
Now that we’re familiar with the typical credit score range, let’s see where in that range the average credit score by age typically falls. This information comes directly from the latest credit score generational survey performed by Equifax Canada.
| Age Range | Average Credit Score | Credit Range |
| 18-25 | 692 | Fair |
| 26-35 | 697 | Fair |
| 36-45 | 710 | Fair |
| 46-55 | 718 | Fair |
| 56-65 | 737 | Good |
| 65+ | 750 | Good |
Average Credit Score in Canada by Age – 18-25
As you’ll read below, credit history can influence up to 15% of your credit score. As a result, people 18-25 years old typically have the lowest average credit score in Canada by age, with a score of 692. As this generation ages and their credit history improves, their credit score tends to move up.
This is a fair credit rating, and unless there are other mitigating circ*mstances, people with a 692 credit score should be able to:
- start opening credit cards,
- finance a vehicle,
- and continue to build their credit.
This is a time for caution, though. Opening too many credit cards or accumulating too much debt at this age could negatively affect your credit score as you age.
Average Credit Score in Canada by Age – 26-35
There isn’t a whole lot of improvement in the average credit score in Canada by age for the 26-35 crowd. This generation typically improves their credit score to an average of 697. This is still considered a fair credit rating, and obtaining credit shouldn’t be too much of an issue.
With an average credit score of 697, Canadians should:
- start to see more favorable interest rates,
- be able to rent an apartment without a co-signer, and
- see their insurance premiums drop.
Still, proceed with caution. Keep your credit cards at a low balance, and make each debt payment on time. Doing so will ensure that you keep your credit in check and can afford the finer things in life as you get older.
Average Credit Score in Canada by Age – 36-45
Canadians in the 36-45 age range tend to have an average credit score of 710, which falls near the top end of the fair credit range. As this generation’s credit history becomes more established, their average credit score has improved.
With a 710 credit score, this generation of Canadians should have no problem:
- financing a second car,
- being approved for a mortgage, or
- obtaining unsecured loans for a small business venture.
As always, caution is still needed to keep this score on its upward trajectory.
Average Credit Score in Canada by Age – 46-55
Even up into middle age, Canadians still tend to find themselves with only fair credit. The average credit score in Canada by age for the 46-55 crowd is 718.
While still not considered good credit, Canadians in this age range are starting to see the benefits of a higher credit score. As a result:
- interest rates continue to fall,
- more credit begins to be extended,
- higher loans on mortgages become available, and
- employment in financially sensitive jobs becomes a possibility.
Still, much diligence is needed to keep this score from slipping. While your income and credit score may be improving, so is the temptation to take on more debt than you may be able to afford.
Average Credit Score in Canada by Age – 56-65
By this age range, Canadians find themselves a bit more financially stable. They have some savings, equity in their home, and a well-established credit history. As a result, the average credit score in Canada by age for the 56-65 generation sits at 737. Finally, in the good credit range.
Once your credit is in the good to excellent range, more financial opportunities become available, such as:
- credit cards with high rewards and low interest,
- mortgage loans with low down payments,
- mortgage loans for investment properties,
- higher paying jobs where good credit is required, and
- the ability to take out unsecured loans for business ventures.
All of the hard work keeping your credit score up is finally paying off financially.
Average Credit Score in Canada by Age – 65+
As Canadians enter retirement, they see the best average credit score rating of any generation: 750. While this is still a little short of an excellent credit rating, it will make retiring with the finer things in life a lot easier.
With a 750 credit score, this generation of Canadians can:
- finance a second home,
- take out loans for one or more small business opportunities,
- finance multiple investment properties, and
- find the lowest interest rates possible.
An easy retirement is what this generation has been looking forward to their entire life. By being diligent about maintaining their credit score, this goal is finally within reach.
Factors that Affect Your Credit Score
By now, you know your credit score, whether you have poor to excellent credit, and if your credit score is close to the average credit score in Canada based on age. But how did your credit score get to be where it is?
Every fluctuation in your credit score can be attributed to one of the five factors below:
- Payment History
- Debt-to-Credit Ratio
- Credit History
- Public Records
- Credit Inquiries
Let’s see how each of these factors contributes to your credit score.
#1 Payment History
35% of your credit score is determined by how you repay your debt. If you make monthly payments on your debt in full and on time, this will be reflected in a better-than-average credit score.
Conversely, if you’re only making partial monthly payments on what you owe, or if you’re late or behind on payments, this could have a very detrimental effect on your credit score. Possibly even dropping you from good to below-average credit.
#2 Debt-to-Credit Ratio
30% of your credit score is determined by how much of your available credit you’re using. Generally speaking, banks and credit bureaus like to see you use less than 30% of the credit you’ve been extended.
If you have a credit card with a $10,000 limit, carrying a monthly balance of between $0 and $3000 should not negatively affect your credit. Once you surpass the 30% debt-to-credit ratio, your credit score is likely to start dropping. Our recommendation is to pay your cards off in full every month.
#3 Credit History
15% of your credit score is determined by your credit history. If you’re young and just starting out on your own, you lack credit history. This is one of the reasons credit scores are lower in young people and improve with age. Establishing a history of credit and paying that credit off in a timely manner will help you to improve your credit score.
#4 Public Record
10% of your credit score is determined by what the credit bureaus can find out about you. If they look through public records and find things like court judgments against you, evictions, lawsuits, or even unpaid parking tickets, that could negatively affect your credit score.
#5 Credit Inquiries
10% of your credit score is determined by how often your credit is checked by creditors. Credit Bureaus aren’t huge fans of you constantly shopping around for credit. Applying for a mortgage, a car loan, or even opening a credit card every now and again probably won’t hurt your credit score.
If the credit bureaus see you’re out every week trying to open up a new line of credit, they’re going to take notice and ding your credit score. So, the next time the department store you’re shopping in wants to know if you’d like to open store credit, think long and hard about how that inquiry will affect your credit score.
10 Tips to Improve Your Credit Score at Any Age
If you’re finding that your score is lower than the average credit score in Canada based on your age, there are a few things you can do to improve your credit.
- Focus on credit history by making sure your oldest credit cards are carrying a low balance.
- Make all of your payments on time. Even one late or missed payment can lower your credit score.
- Reduce the number of credit inquiries you’re receiving.
- Make more than the minimum payment on your credit cards.
- If you can afford to pay cash for something instead of putting it on your credit card, do so.
- Instead of opening new credit cards, talk to your current debtors about extending your existing credit limit.
- Remember only to use around 30% of the credit extended to you.
- Keep in touch with your creditors and tell them if you’re having a bad month or two. They may be willing to work with you.
- Monitor your credit report for fraudulent or inaccurate information. You’d be surprised how often credit is damaged through fraud and mistakes.
- Seek professional financial help. Licensed Insolvency Trustees can work with your creditors to reduce the interest and principal you owe, usually at little to no cost to you.
Do You Fall Below the Average Credit Score in Canada by Age? – We Can Help.
Is the average credit score in Canada considerably higher than your credit score? There’s no need to panic. Even if your debts are high and your credit score is low, there are options available to fix that.
As Licenced Insolvency Trustees, we’ve helped numerous Canadians reduce their debt and improve their credit scores. Reach out to us today for a free consultation, and let us see what we can do to help you improve your financial situation.
