If you’ve ever been declined for a loan, credit card, or financing application, you’ve probably wondered whether your credit score was the reason.<\/p>\n
One of the most common questions Canadians ask is: “What is considered bad credit in Canada?” <\/strong>If you’re wondering whether you have a bad credit score in Canada, understanding how Equifax and TransUnion classify credit scores is the first step toward improving your financial options.<\/p>\n The answer isn’t always straightforward. While most lenders consider a credit score below 560 to be poor, Equifax and TransUnion use different scoring models, and lenders often apply their own approval criteria as well. That means a score that one lender considers risky might still qualify with another lender.<\/p>\n Understanding whether your score falls into the poor, fair, or good credit range is important because it directly affects the types of financing available to you. If you’re already dealing with a low score and exploring borrowing options, our comprehensive guide to bad credit loans in Canada<\/a><\/strong>\u00a0explains how alternative lenders assess applications and what solutions may be available.<\/p>\n In this guide, we’ll explain:<\/p>\n A credit score is a three-digit number that helps lenders assess how likely you are to repay borrowed money.<\/p>\n In Canada, credit scores range from 300 to 900<\/strong>, with higher scores indicating lower lending risk. The two major credit bureaus that calculate and maintain credit scores are:<\/p>\n Both bureaus collect information from lenders, banks, credit card companies, and other creditors to build your credit profile. Although they use the same overall 300\u2013900 scale, your scores may differ because each bureau can receive different information and use different scoring models.<\/p>\n Generally speaking, a credit score below 560<\/strong> is considered bad or poor credit in Canada. Borrowers in this range often face:<\/p>\n Most major banks and traditional lenders prefer borrowers with scores above 660, while scores below 560 often require alternative lending solutions.<\/p>\n However, your score alone does not determine approval. Lenders also evaluate:<\/p>\n This is why some borrowers with poor credit can still qualify for financing.<\/p>\n For more information about how credit scores work and what factors affect them, Canadians can review the resources provided by the Financial Consumer Agency of Canada (FCAC)<\/a>.<\/p>\n Many Canadian lenders use Equifax data when assessing loan applications.<\/p>\n Here’s how Equifax generally categorizes credit scores:<\/p>\n\n
What Is a Credit Score?<\/h2>\n
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What Is Considered a Bad Credit Score in Canada?<\/h2>\n
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Canadian credit score ranges used by most lenders. Scores below 560 are generally considered poor credit, while scores above 760 qualify for the strongest borrowing opportunities.<\/span><\/p>\nEquifax Credit Score Ranges Explained<\/h2>\n
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