What is the average credit score in Canada?

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Credit scores are based on your individual circumstances and payment history, but is there an average? Is there an expected average for different ages? Our car loan team went to find out.

The vast majority of financial decisions will be up to you credit score. Whether it’s a mortgage, car loan, credit card, student loan or something else. All base their loan decisions on your credit score, among other things.

What’s in a Credit Score?

A credit score is a figure between 300 and 900 that reflects your credit risk. Lenders use it to assess whether you are a good bet and will pay off any debt on time. The higher the score, the more likely you are to pay back.

credit score ranges

The more likely you are to repay, the more lenders are willing to work with you and the lower the interest rate you will pay.

Your credit score is made up of:

  • Payment history – The more debts you pay off and the more you pay on time, the more this contributes to your score.
  • Total debts – The amount of debt you currently have it can affect your credit score. The more you have, the riskier it would be to lend, which lowers your score.
  • Credit history – The the longer you have successfully paid off the debtplus this helps your credit score. Conversely, the shorter your debt record, the lower your score as you are more than an unknown quantity.
  • Mix of credits – Count the type of credit you used. The mix aspect means the variety of debt you used, credit cards, Burford car loans, mortgages and so on. The broader the mix, the more positive impact it will have.

how credit score is calculated

What is the average credit score in Canada

Credit scores are international, but each country is processed a little differently. Here, our average scores are:

  • Poor credit is considered below 500
  • Average credit is about 650
  • Good credit is 660- to 734
  • Excellent credit is over 760

(Source: Equifax)

If you want to know the average credit score by age, you need to dig a little deeper.

  • Age 16-25 – credit score of 692
  • Age 26-35 – credit score of 695
  • Age 36-45 – credit score of 705
  • Age 46-55 – credit score of 719
  • Age 56-65 – credit score of 738
  • Over age 65 – credit score of 750

These average credit scores by age are likely due to older people having a higher credit history and learning to be financially reasonable. There are of course exceptions, but these are averages.

Credit scores and car loans in Burford

As we all know, the higher your credit score, the more likely you are to qualify for a car loan. Also, the lower the interest rate you will pay.

Having a bad credit score doesn’t mean you can’t get a car loan. It just means fewer lenders will be willing to work with you, and you’ll likely pay a higher rate.

There are very few circumstances that we have come across where someone has been unable to get credit when they need it. This is especially true when you work with our auto loan experts.

For those of you who know you have a tough credit situation, please Visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!

This article was published by: Michelle Paletta by title: What is the average credit score in Canada?

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