Just because you’re young, though, doesn’t mean that you have bad credit. That said, in general, the older you are, the higher your credit score. This doesn’t mean that the difference is large or that you don’t have an excellent score; it just means that the more credit history you have, the more likely you are to have a higher credit score.
Breakdown of Credit Scores By Age
The average Canadian credit score is around 680, which is considered good. That said, this number changes slightly when we break down the average by age.
Ages 18-25
Those between the ages of 18 and 25 are relatively new to credit in Canada. You can only start building your credit score with consumer loans and car loans at age 18. For this reason, your credit history is likely to be a bit shorter. However, you are still able to build credit to a decent credit score. The average credit score for this age group is currently 692, which is pretty decent.
Ages 26-35
Those between the ages of 26 and 35 are likely to have higher credit scores because they have a bit more credit history. That said, the average credit score is only a few points higher than that of those in the younger age group. The average score is 697.
Ages 36-45
Because this is the age at which many Canadians purchase their first home and start a family, the average credit score at this age is considered high. This is because a credit score of 680 or higher was needed to purchase your first home (now 600 is required), and many new parents want to put themselves in a financially stable situation with healthy financial habits before they start expanding their family. The average score is 710.
Ages 46-55
Generally speaking, those between the ages of 46 and 55 likely have a long credit history and a good credit mix (different types of credit) on their credit profiles. They’ve also had time to build a good payment history and correct any slip-ups they may have had, as their long credit history grows. We see this in the average credit score for this age group, which is 718.
Ages 56-65
Those between the ages of 56 and 65 have one of the highest credit score averages, which is 737. As we mentioned before, those in this age group can use their age to their advantage. Time can correct any negative effects on your credit score. In fact, after 6-7 years, collections can completely drop off your credit report.
Ages 65 plus
Based on the trend we’re seeing, where the average credit score increases with age, it’s no surprise that those with the highest credit scores are in the 65-plus age group. Their average credit score is 750, which is considered very good. Even though their income is likely lower because they’ve reached retirement age, they have built up their credit score over time and balanced their credit report.
The Overall Average Credit Score in Canada in 2026
In 2026, the overall average credit score was 679. This is within the good range and is considered the safe zone for standard bank loans. Many different factors impact credit scores, including:
- Available credit on revolving debt
- New credit inquiries
- Debt-to-income ratios
- Payment history
Does Age Directly Impact Your Credit Score?
While your age itself doesn’t directly affect your credit score in Canada, the ages of your credit accounts and the length of your credit history do make a difference. It shows a good track record of on-time payments and can contribute to a better credit mix.
Having a line of credit, credit cards, mortgages, personal loans, and other types of credit contributes to a higher credit score. Plus, having a longer credit history can lower your credit utilization, which, with low credit card balances, can improve your credit score.
How Equifax and TransUnion Scores Differ By Age
When it comes to average credit scores by age, the averages we mentioned above align with both Equifax and TransUnion Canada. Both bureaus have the same credit score ranges, and the differences in your scores are based on how many of your credit lines report to that credit bureau. As a result, some may have the same scores across both bureaus, while others may differ slightly.
How Fast A Young Canadian Can Build Credit
For a typical Canadian, it can take 3 to 6 months to establish a base credit score. It can then take anywhere from 12 to 24 months to get into the good credit range. This is why credit can increase with age. It can take anywhere from 5 to 10 years to reach a credit score of 800+; however, this does depend on your credit mix.
If you’re looking to build credit history and improve your credit score, the best way is to have higher credit limits while reducing credit utilization. It’s difficult to get more favourable interest rates if you don’t have many older credit accounts. Instead of gaining more consumer debt with payday lenders to build your credit score, there are alternatives.
Since it can be difficult to get additional credit accounts when you’re new to credit, a secured credit card is one of the best options. Pretty much anyone can be approved, and all you need is a deposit to open the card. Your monthly payments then contribute to your payment history, and your card balance contributes towards your credit utilization.
What Factors Affect Your Credit Score?
While age is a large factor in what your credit score is, it isn’t the only factor. In fact, credit bureaus use information from your credit report to calculate the three-digit number that is your credit score. Keep in mind, though, that each credit bureau’s credit score will be a little different, meaning that you’ll have both an Equifax credit score and a TransUnion credit score. Here are the factors for one of the different credit scoring models that affect how your credit scores are calculated.
Credit Utilization
Your credit utilization ratio accounts for roughly 30% of your credit score. This is how much of your revolving credit limit you use in comparison to your total credit limit. To get the most positive effect on your credit score, you should keep your credit utilization low at 30% or lower. The higher your credit utilization, the more it will negatively affect your score.
Length of Credit History
The length of your credit history makes up 15% of your credit score. The longer you have a credit line, the better it looks on your credit report. For this reason, it’s also important to have a good credit mix and to have a limited number of cancelled credit lines. How much credit you have makes a difference in your score; ideally, the more credit you have, the better.
Payment History
Your payment history makes up 35% of your credit score. While the odd missed payment may not affect your credit score too much, having multiple late or missed payments on your credit report bodes negatively for your overall credit score.
Public Records
Public records are another part of your credit score. They make up around 10% of your credit score. Public records include credit products that are in collections, consumer proposals, any bankruptcies, lawsuits or anything else that can hurt your score.
Credit Applications
The factor that makes up the last 10% of your credit score is credit inquiries. While soft credit checks don’t make a difference to your credit score, every hard credit check can reduce your credit score by 5 to 15 points. For this reason, it’s recommended that you have fewer than 6 credit checks done per year.
Credit Score Model
In Canada, credit scores range from 300 to 900, with 300 being the lowest and 900 the highest. Your score will be based on the range from Poor to Excellent. Let’s take a look.
| Category | Credit Score Range |
| Poor Credit Score | 300 – 559 |
| Fair Credit Score | 560 – 659 |
| Good Credit Score | 660 – 724 |
| Very Good Credit Score | 725 – 759 |
| Excellent Credit Score | 760 – 900 |
What is the Average Credit Score by Province?
While where you live doesn’t impact your credit score, every province does have a different credit score average. Let’s take a look:
| Province | Average Credit Score |
| BC | 694 |
| Ontario | 686 |
| Alberta | 658 |
| Quebec | 678 |
| New Brunswick | 649 |
| Nova Scotia | 664 |
| Saskatchewan | 658 |
| Manitoba | 661 |
How Long Negative Items Stay on Your Credit Report
In Canada, many factors can impact your credit score, such as hard inquiries, your credit age range, credit behaviours, inaccurate information, and debt obligations. In fact, having accounts in good standing is one of the best ways to achieve a credit score of 760 or higher, placing you in the excellent credit score range.
Having a negative item on your credit report can significantly reduce your credit score calculation. It can then remain on your credit report with the major credit bureaus for about 6 years. That said, the exact time depends on the province you live in and the credit reporting agencies’ rules.
Late or unpaid payments can stay on your credit report for up to 6 years from the date of the missed payment or delinquency. A court judgment or bankruptcy can last 6 years, but it changes to 7 years if you’re in Newfoundland, Ontario or Quebec. It’s 10 years in PEI.
A consumer proposal stays on your report for 3 years after you pay off all of your debt, or for 6 years from the date it was signed. Debt management plans are removed 2 years after you finish paying them. Credit inquiries last 3 years with Equifax Canada and 6 years with TransUnion Canada.
How Closing Your Oldest Credit Card Impacts Your Credit Score
Closing your oldest credit card impacts your credit score by reducing your available credit limit. This raises your credit utilization ratio and shortens the average age of your credit history. To preserve your Canadian credit history, instead of cancelling the card, you could downgrade it or switch to a free version.
Instead of using the card continuously, you can set up a small, recurring subscription on the card. You can also renegotiate your interest rate to a lower rate. This keeps it active without racking up your balance.
How Do You Keep Track Of Your Credit Score?
Before you start applying for credit accounts, it’s a good idea to know where your credit score falls and keep track of your financial health. In Canada, there are many ways you can do this at no cost. Here are a few ways to do so.
Free Equifax and TransUnion Reports
Since a credit score plays an important role in your financial life, you should occasionally check your credit file. However, since credit inquiries account for a portion of your credit score, you can’t continually check your full credit report.
For Canadian consumers looking to check their credit score, since credit scores tend to vary, checking your score for free with a soft inquiry is the best option. With Equifax, you can log into your Equifax account and check your free credit report. If you live in Ontario or Quebec, you can get a free copy of your credit score with TransUnion. Alternatively, you can get your credit score through banks and credit unions.
Online Credit Checking Sites
One of the most common ways to check your credit score is through online credit reporting sites such as Credit Karma, Borrowell, and ClearScore. Each of these credit score companies provides a safe, accurate representation of your free credit score and offers helpful credit advice. That said, they only work with one credit bureau, so you may need to sign up for more than one site to get both your Equifax Canada and TransUnion credit scores, since different financial institutions will report to different credit bureaus.
As an alternative, you can also use a paid credit score app. The most popular one is currently Credit Verify. With this app, you have access to a bunch of unique features, including their credit score simulator.
Credit Bureaus
Another way to check your credit score is through the credit bureaus. Both TransUnion and Equifax offer credit check services just like the online credit sites above. With the credit bureaus, you can also do a hard credit check for free once per year. This hard credit check doesn’t just show you your credit score; it gives you a full rundown of your credit report and full credit history.
Online Banking
Depending on who you bank with, you may be able to keep track of your Equifax or TransUnion credit score. It’s a good idea to track both, but you may have to find an alternative method to find your second credit score.
Credit Building Tips for Newcomers to Canada
Newcomers and Canadians aged 18 will be able to build a credit score in Canada. However, it takes time to build your credit score with both Equifax and TransUnion, and your credit score from another country won’t transfer. That said, there are a few steps that you can take to help speed up the process.
- Get a SIN and a bank account
- Get a Newcomer Credit Card
- Get a Secured Credit Card
- Get bills that help you build your credit score
When you’re just starting and building your credit score, it’s important to pay bills on time. Your payment history is a big part of your credit score because creditors report your payments to the credit bureaus every month. This report then tells other creditors whether you’re a credit risk.
By taking a few simple steps and making your debt payments, you can manage your credit and improve your scores. Since credit scores evolve, paying attention to your debt-to-credit ratio and checking your own score and credit report regularly, you can obtain higher average scores while reducing your financial stress.
Credit Score Benchmarks for Mortgages and Car Loans Based on Age
When it comes to getting a mortgage or car loan in Canada, age itself isn’t a factor. In fact, age doesn’t have a direct impact on what your credit score should be to get either, according to the Financial Consumer Agency of Canada.
When getting a car loan, since credit scores vary, most lenders look for a score of 700 or higher to offer the best interest rates. With the current cost of living, having a lower credit score can give you a rate that makes your payments relatively unaffordable.
While you only need a credit score of 600 to get a mortgage with CMHC insurance, a higher credit score is recommended. This is because a higher credit score indicates lower delinquency to lenders and can get you access to better mortgage rates.
How To Improve Your Credit Score
No matter your age, it’s never too late to improve your credit score. You can do this by improving any or all of the 5 categories that make up your credit score. This is the general credit scoring model used in Canada. Here are a few ways you can do this.
Credit Utilization
One of the most common reasons your credit score suffers is having a credit utilization rate above 30%. While paying down your revolving credit lines is one way to increase your credit score, it isn’t the only way. Another way to do this is by increasing the overall credit limit. As long as you don’t spend any more money, this lowers your utilization and increases your score.
New Positive Credit Lines
If negative credit lines are bringing down your credit score, the easiest way to combat this is to add new positive credit lines. While this can be difficult due to your low credit score, taking advantage of secured loans and credit cards could be beneficial for you. Most of these products are guaranteed to be approved and can be converted into traditional credit lines once you prove to the lender that you can make your payments on time.
Positive Payment History
If you have a lot of missed payments on your credit report, making your payments on time can gradually offset them. The more positive payments you can show on your credit report, the higher your credit score. This will also show lenders you’re financially responsible, allowing you to add more positive credit lines to your report.
Reasons Credit is Important
Not only does having a good credit score help you get lower interest rates on financial products such as personal loans, but it can also make a difference when it comes to renting and even getting a job. Landlords and employers look for those who show responsible credit use when making their final decisions.
If you make poor decisions in your personal finances, they may be uneasy about choosing you. Having too much debt or being unable to repay it can make landlords think you won’t be able to pay your rent.
