How do credit scores work in Canada: Complete guide for expats 🇨🇦

As your credit score is an important measure of your creditworthiness it can also be used when setting up long term utilities or phone contracts, or even getting approved to rent an apartment.

So – what is a good credit score in Canada and how can I check my credit score to know where I stand? This guide walks through the agencies which operate credit scores in Canada, and how to improve your score if you need to.

Overview of Canada’s credit system 🇨🇦

Each country has its own credit system so if you’re a new arrival or expat you’ll want to get to grips with how credit scores work in Canada.

Having a local credit score in Canada is important as it’s one way your creditworthiness is established when you take out credit, or take on a contract like a rental agreement on a home, or a new phone or broadband agreement. Unfortunately when you move countries you might find you have to build your local credit history from scratch.

We’ll cover how to check a Canadian credit score in this guide, as well as how you can improve your credit score to make it easier to manage your Canadian finances.

This guide is for information only. If you need support with understanding your Canadian credit score, get professional financial advice.

Understanding credit scores in Canada

There are two major credit score companies in Canada.

These companies don’t share the exact way they calculate a credit score, but the Canadian government does list out some helpful information about the factors that are taken into account when they run a credit score check.

💡 Credit score agencies in Canada look at factors like the following to determine your score:

• How long you’ve had credit and the types of credit you’re using
• How you use credit cards, including your balance and any missed payments
• How much you owe in outstanding debts
• How close you are to your credit limit
• How many recent credit applications you’ve made
• If your debts have been sent to a collection agency, or if you have a record of insolvency or bankruptcy

Each credit bureau then assigns a score to you, which is checked and updated regularly as additional information is passed to the agency. Different bureaus use their own scoring mechanisms and have their own ranges which are considered Excellent – Poor.

To give an example, here’s an outline of the credit score ranges as featured by Scotiabank:

📂 Category	🎯 TransUnion Score Range	🎯 Equifax Score range	💡 Impact
Exceptional	833+	760–900	Best interest rates; easy approval.
Very Good	790-832	725–759	Strong application for credit, frequent approval.
Good	743 – 789	660–724	Considered a reliable borrower
Fair	693-742	560–659	Rates may rise and application success can be more limited.
Poor	300-692	300–559	Applications for credit may be refused, specialist credit services may be needed.

Before you start thinking about your Canadian credit score it’s helpful to get reports from both agencies so you can see where you stand – bearing in mind they may have slightly varied metrics.

Credit bureaus and credit reports in Canada

💡 There are two major credit score bureaus in Canada:

• Equifax Canada
• TransUnion Canada

Each has a different scoring method, and so you might find you have varied scores depending on the agency used. All that really matters is that the organisation checking your score – like a bank or a credit card company – agrees your score is adequate for the services they’re offering.

Why credit scores matter for expats in Canada 🇨🇦

📌 Canadian credit scores can be used for the following:

• Mortgage applications and home buying requirements
• Credit card approvals and interest rates
• Personal loan access and terms
• Rental applications and security deposits
• Insurance premium calculations
• Employment background checks (where applicable)
• Utility deposits and service connections

⚠️ If you don’t have a good Canadian credit score you may find your opportunities for getting credit are limited, and interest rates are higher than you’d like when your applications are approved.

Credit scores and consent in Canada

It’s helpful to know that in most cases you must give written permission for a business or individual to use your credit report.

However, in the following locations the business only needs to inform you that they will do so, rather than having explicit consent:

• Nova Scotia
• Prince Edward Island
• Saskatchewan

What affects your credit score?

📌 The factors which impact your Canadian credit score negatively can include:

• Having little or no credit history – important for expat new arrivals in Canada
• Repeat credit checks – such as if you’re applying for many credit cards or other loan products all at once
• Bill payment history – keep up with your commitments for a better score
• Running close to your credit limits when spending on a credit card – or missing repayments entirely
• Borrowing more than you can repay – which can result in legal judgements against your name which damage your score significantly

Starting with no credit history as an expat 🇨🇦

When you first move to Canada you will often find you have no credit history that’s visible to Canadian credit agencies. Some banks offer solutions through their newcomer programs which can offer credit services with a limited local history.

However, having a strong credit score is still likely to be important for other uses such as getting approval to rent an apartment. That means you’ll need to build your credit score as quickly as possible through sensible steps and budget management.

How to build credit as an expat in Canada

There are steps you can take to ensure your Canadian credit score improves, which can mean your future loans and credit cost you less.

💡 Here are some ways to build credit as an expat in Canada:

• Make regular payments – such as direct debits which show you can manage your money effectively
• Do not borrow too much, and repay credit cards regularly – avoid missing repayments or running up too much debt
• Don’t change accounts too often – including credit cards and bank accounts as frequent applications can look suspicious to credit scoring agencies
• Check and correct errors in your score – check your credit score often and ask to see your credit file. If there are errors in the file you can ask the agency to correct them which can improve your score

Timelines for building credit in Canada as an expat 🗓️

There’s no single timeline to build your credit score as it will all depend on your individual circumstance.

However, here’s an overview of some common actions you might take to improve your Canadian credit score, and the timings which may work for many expats:

🗓️ Approx timelines for building credit as a new expat in Canada
0-3 months	No credit score – Open a bank account and apply for a basic credit card through a newcomer program
3-6 months	Score building – Check your score with all agencies regularly, and correct errors, set up direct debits where possible to show regular payments
6-12 months	Management – Do not max out your credit cards and continue to repay in full and on time to build your score steadily
12-24 months	Secure – You may find your score is now hitting the ‘Good’ to ‘Very Good’ ranges with careful management
2 years +	Maintenance – Check your scores regularly for errors and report fraud if you ever experience it

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Types of credit and their impact

There are some different types of credit which may influence your credit score in Canada in different ways:

📂 Types of credit
Revolving credit like a credit card	Avoid maxing out your revolving credit lines and pay back in full and on time to get the best credit score improvements
Installment credit like a home loan	Repay installments on time and make overpayments if you’re allowed to, to show responsible borrowing and repayments
Open credit like a charge card, repaid in full monthly	Repay everything you owe each period to meet the terms of your credit agreement
Service credit like a contracted post pay phone bill	Setting up direct debits can ensure regular payments are made and show credit agencies you’re a reliable customer

Using credit scores for major purchases

Credit scores in Canada are used when you apply for financing of different types – here are some common occasions when your credit score may be important in dictating your approval rates of the credit interest rates you get:

Examples of major purchases in Canada
🏡 Getting a mortgage	Mortgage approval may require a credit check, and low scores could mean you’re moved to a less favourable interest rate
💳 Credit card applications	Credit card applications usually need a credit check – prime cards with high credit limits have demanding credit score requirements
🏦 Personal loans	Banks are likely to ask for a credit check for any unsecured loan, and may only offer lower loan amounts or higher interest if your score is poor
🚗 Car loans	Car financing looks at your credit score and can mean your loan is more expensive overall if you do not have a strong credit score when you apply
Other purchases	Minimum score requirements can apply for different products and services – such as Buy Now Pay Later services or retail cards

Expats in Canada may find that large or regular payments such as a mortgage or car loan involve sending money from abroad to be received in Canada to cover your repayments. In this case, keep your costs low with international transfers from Wise.

You get the mid-market rate with low fees – and there are progressive discounts on the costs when you send higher amounts, with a dedicated support team to help you through every step of the transfer.

Credit score monitoring and improvement

Canada has two major credit agencies which each calculate your score differently.

It’s a good idea to check your score and ask for your credit file from each on a regular basis until your credit score in Canada is stable and established. There’s no impact on your score when you request a report from a credit agency – and spotting errors or omissions in your report can help you improve your score in the end.

Credit for different expat situations

💡 It’s common to require credit from time to time, but the reasons and types of credit needed by expats might vary a lot depending on your situation. For example:

• International students may want to apply for a student credit card, which will require a credit check or guarantor in many cases
• Temporary workers may need a credit check to access housing or get a phone for use in Canada
• Permanent residents may be concerned with long-term credit building to get cheaper access to long term products like mortgages
• Digital nomads may need to maintain credit across borders by building a history in Canada whilst also managing their credit history in their home country

While you’re thinking about managing your expat finances in Canada, why not take a look at Wise for low cost currency conversion, easy international transfers, secure card spending and no ongoing account fees.

Common credit mistakes expats make in Canada

⚠️Let’s round out with a few common credit mistakes expats make in Canada so you can avoid the pitfalls:

• Failing to appreciate the need for a good credit score – even if you don’t want a loan you may need a Canadian credit score to secure housing or get a phone
• Opening many accounts and cards all at once – applying for several credit cards can reduce your credit score as it may look irresponsible
• Putting too much on credit – moving country is costly, but maxing your cards can mean damaging your long term credit score

Getting professional help and resources 🇨🇦

If you’re struggling with your money in Canada you’ll need to take professional advice to help you get on top of things. Your own bank may be able to work with you to find a solution to your money worries.

There are also some helpful digital resources you may want to draw on to learn more and tap into support networks:

• Canadian Government – Canadian government resource website for managing your money in Canada
• Credit Counselling Society – Canadian not for profit organisation helping people struggling with debts
• Credit Canada – Canadian not for profit organisation helping people struggling with debts

Useful resources

Information last checked 12th February 2026

• Canadian Government – credit score explainer for Canada
• Equifax Canada – credit score bureau with useful information and educational tools
• TransUnion Canada – credit score bureau with useful information and educational tools
• Canadian Government – Canadian government resource website for managing your money in Canada
• Credit Counselling Society – Canadian not for profit organisation helping people struggling with debts
• Credit Canada – Canadian not for profit organisation helping people struggling with debts