Credit & Debt

Credit Scores

A credit score is a three-digit number based on information in a credit report that helps lenders estimate credit risk.

4 min

Credit 101 • 07

A credit score summarizes part of your credit history into a number.

Lenders use scores as one input when deciding how risky it may be to lend to you.

The exact scoring formulas are not public.

Different bureaus and lenders can use different models, so you may see more than one score.

Common factors can include

01Payment history02Amounts owed03Credit utilization04Length of credit history05Types of credit06Recent credit applications

Credit score and financial health are different.

01

Credit score

Focuses on borrowing and repayment behaviour.

02

Financial health

Also includes savings, income, expenses, net worth and other factors.

Canadian credit scores usually use a broad range.

Low end300
High end900
Higher scoreGenerally viewed more favourably
Exact lender cutoffVaries

A strong score does not mean you should borrow more.

It only tells part of the story about how you have handled credit.

The boring habits matter.

01Pay bills on time02Keep debt manageable03Avoid unnecessary applications04Use credit limits carefully

Remember this

A credit score is a lending signal, not a life score.

Use it as one piece of information about your credit behaviour.

Lesson complete

Reviewed 2026-08-18

Screen 1 / 1