Analysis of Credit Scores - A Professional Opinion

To Begin With... How Credit Works

Your credit score is a number between 300 and 900, generated by a computer algorithm based on your credit history. It updates monthly and plays a major role in determining whether you’ll be approved for credit — whether that's a credit card, loan, or mortgage.

If you're 18 or older and have had any type of credit in Canada, you already have a score. In fact, you likely have two scores — one from each of the two major credit bureaus in Canada:

• Equifax

• TransUnion

Want a full breakdown of how credit works? 👉 Read our earlier post: The Basics of Credit in Canada.

Now let’s focus on what most people want to know: What does my credit score actually mean?

Analysis of Credit Score Ranges

(Straightforward, expert-backed, and based on real-world experience)

A Quick Tip:

You don’t need to memorize every range. Just pay attention to the 600–700 zone — because that’s where it usually gets serious.

🔴 600 & Below: Poor

Any score under 600 is a red flag to most lenders. It suggests — fairly or unfairly — that you may have poor money habits.

Here’s what might be hurting your score:

• You’ve missed or skipped payments

• You’ve paid bills more than 30–90 days late

• You’re using too much of your available credit

• You have more debt than your income can support

• You’ve ignored your credit health or haven’t built credit properly

Bottom line?
There’s a reason your score is below 600 — and you need to find it. The good news? Once you know what’s wrong, you can start fixing it.

Need personalized help?
I’m a certified Credit Counsellor, and I can walk you through exactly what’s holding you back — and how to become mortgage-ready. Contact me

🟡 600–680: Average

This is the most common range. You're not in trouble, but there’s still room to improve.

Typical reasons for a score in this zone include:

• Limited credit history (aka a "thin file")

• Using a large portion of your credit limit

• Having only one credit product (e.g. just one card)

• Being new to Canada or new to credit

• A few minor missed payments or inconsistencies

• Not actively using credit (which can limit your score growth)

You’re almost there — a few small tweaks could get you into the excellent zone.

Think of this range as your financial "in-progress" stage.

🟢 680 & Above: Excellent

This is where you want to be. Lenders see you as someone with strong financial habits and low risk. With a score in this range, you’re more likely to:

• Be approved quickly

• Access better interest rates and products

• Receive promotional offers and lender discounts

Just keep doing what you’re doing: pay on time, use credit responsibly, and avoid unnecessary new credit applications.

Final Thought:

Your credit score isn’t just a number — it’s a tool.
Understanding it helps you build a path to financial confidence and long-term success.

Whether you’re just starting out, rebuilding, or preparing for a big purchase like a home — I’m here to help you get mortgage-ready, one step at a time.

Transunion credit score ranging from 300 to 850 (Transunion)