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How to Get a 900 Credit Score in Canada

Sandra MacGregor

Jun 17, 2024 10 min read

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How to get a 900 credit score canada

Your credit score is a number that represents your creditworthiness. They range between 300 and 900, with a higher score indicating greater creditworthiness and therefore a lower risk of defaulting on debt. A score of 900 represents a perfect credit score, and while it exists in theory it’s actually nearly impossible to get, especially given that credit scores are constantly being updated and changed frequently based on new info credit bureaus get about your personal finances.

That being said, according to 2022 data from Borrowell, the average Canadian credit score is 672, which falls into the Fair range. Excellent scores are anything above 740, so pat yourself on the back and consider yourself a high achiever if you fall into that range. 

Of course, it’s always good to have something to aim for. If your goal is to get as close to 900 as possible, you will need to keep the following points in mind:

  • Pay your bills on time: Late payments will have a significant negative impact on your credit score.

  • Keep your credit utilization low: High credit utilization often indicates to potential lenders that you are using too much credit, which could signal that you are in financial trouble.

  • Check your credit report regularly: Stay informed about what information is going into your credit file by regularly checking your credit report.

  • Keep older credit accounts open: The length of your credit history is an important factor credit bureaus use to determine your credit score, so it is vital to keep an older account open even if you don’t use them.

  • Limit new credit applications: Each time you apply for a new account, a hard inquiry (also called a hard pull) shows up on your credit report, which can temporarily lower your score.

By following these steps and consistently maintaining good credit habits, you may just achieve the magic number of 900.

Very good credit score

Can You Have a 900 Credit Score in Canada?

To better grasp the significance of what it means to have a credit score of 900, it’s helpful to review the standard ranges for credit scores in Canada (note that these could vary somewhat by lender and credit bureau):

300 to 574: Poor

575 to 659: Below Average

660 to 724: Fair

725-759: Good

760-900: Excellent

As you can see, a score of 900 would put you at the very top of the credit score range. While it’s technically possible to have a credit score of 900 in Canada, a 900 is relatively rare and most Canadians will have credit scores that fall within the Fair range. In fact, in Canada, the average credit score is 672, which would mean you’d need to get more than 200 additional points to even be in sight of a credit score of 900. 

Keep in mind that credit bureaus and lenders aren’t really looking for perfection (they know how hard it is to attain 900). Depending on the credit product you’re looking for, lenders often only require that you have a Fair or Good credit score.

How Hard is it to Get a 900 Credit Score?

The credit score range in Canada is between 300 and 900, and a score of 900 represents the highest possible rating of creditworthiness. In fact, any score above 740 is considered excellent, so don’t feel defeated if you don’t quite hit 900. To give you an idea of how hard it is to get such a stellar credit score, some experts estimate that only between 1% to 6% of people have credit scores at or above 850. 

It’s very difficult to achieve a perfect credit score of 900. To do so, a person would need to demonstrate a long history of managing their credit responsibly. They would need to have years of consistently paying bills on time, keep their credit utilization lower than 30%, regularly check their credit report to stay on top of potential issues, and not apply too frequently for new credit. 

To understand why it’s such a massive challenge to get a score of 900, it’s useful to take a look at the five main factors that credit bureaus use in their credit scoring models to calculate a person’s credit score.

These key factors include:

  • Payment history 35%: Your record of paying bills on time, including credit card bills, loan payments, and rent payments.

  • Credit utilization 30%: The amount of credit you're using versus the amount you have available based on your total credit limit.

  • Length of credit history 15%: How long you have had credit accounts, including the average age of your credit accounts.

  • Recent credit inquiries 10%: The number of recent credit checks or inquiries, such as when you apply for a loan or credit card.

  • Credit mix 10%: The mix of different types of credit products you use , including a combination of credit cards and loans.

Be aware that different credit bureaus may have unique credit scoring models that weigh these factors differently, but generally, payment history and credit utilization are the most significant factors that impact overall credit scores. If you want a good credit score, it’s essential to pay attention to the five factors listed above.

Higher credit limit

What is the Fastest Way to Boost Your Credit Score?

Unfortunately, improving credit scores is a marathon rather than a sprint. It’s not something that’s going to happen overnight and there isn’t just one simple thing you can do to improve your credit report or score. While there is no single fastest way to boost your credit score, there are a few strategies that can help you raise your score:

Always make payments on time

Making payments in full and on time is critical to maintaining a good credit score. Late payments can significantly harm your credit score, so it is essential that you make all payments, including bills and credit card payments, in a timely manner. Late payments can remain on your credit report for up to seven years, so do your best to avoid missing payments. It may be worth setting up automatic payments or reminders if needed, to ensure that all payments are made on or before the due date. Making on-time payments is one of the most effective — and fastest ways —to maintain and improve credit scores.

Increase your credit limit 

Increasing your credit limit on products like credit cards can help your credit score because it can lower your credit utilization ratio. But this approach only works if you don’t start using more credit after increasing your credit limit. Additionally, applying for an increase to your credit limit can sometimes result in a hard pull on your credit report, which might temporarily lower your credit score.

Limit new credit applications

Applying for new credit, such as a loan, credit card, or any other type of credit account, can have a negative (if small) effect on your credit score. This is because a potential lender might do a credit check as part of their approval process, which could result in a hard pull on your credit report. Hard inquiries can have a detrimental impact on your score, and may lower it by a few points. To minimize this impact, limit the number of new credit applications you make. 

Monitor your credit report

It’s a smart move to make it a habit to regularly monitor your credit score and credit file. By keeping track of your credit score, you can take steps to improve it and protect it from potential problems. You’ll be able to detect errors or fraudulent activity on your file. Checking your credit score means that you can also identify any discrepancies or suspicious activity and if you find an error, you can dispute it with the credit bureau and have it corrected as soon as possible to maintain a good credit score.

Pay off debt 

High-interest debt can severely damage your credit score and financial well-being, making it crucial to prioritize paying it off. By decreasing your debt amount, you decrease your credit utilization ratio and show potential lenders that you can responsibly handle your finances. Although paying off debt takes time and effort, it can lead to better credit score outcomes and long-term credit score maintenance. Create a plan, allocate a budget, and focus on paying off debt to enhance your credit score.

Keep old credit accounts open

The length of time you've had credit accounts is a key element of your credit history, and a longer history generally indicates to lenders that you are reliable. When you close an old credit account, you shorten your credit history so keeping the account open and using it responsibly will help improve your credit score over time. 

Diversify your credit mix

Having a diverse mix of credit accounts demonstrates to lenders that you are responsible and capable of managing different types of credit. Having a mix of credit shows that you can manage both revolving credit (such as credit cards) and installment credit (such as loans). 

Report your rent on your credit report

Including your rent payments on your credit report is an easy way to add a new credit line to your report without taking on any extra debt. Think about it: if you’re already making your rent payments on-time every month, then why not get extra credit for doing so? Get started on reporting your rent with Borrowell Rent Advantage. Plus, you can now add up to 2 years of past rent payments to your credit report in one go, allowing you to extend your credit history.

Increase your credit score or your money back!

Add at least 12 months of past rent payments to your credit report and we’ll refund the one-time fee of $59 if your credit score doesn’t increase. Terms and conditions apply.

Start building credit

Take out a Credit Builder Loan

A credit builder loan, like Borrowell Credit Builder, is a type of product designed specifically to help users build up three key factors that determine your credit score: payment history, credit mix and credit history. With a credit builder loan, you make regular payments, which get reported on your credit report, and then at the end of the term, you receive a lump sum back from the payments you made, minus any fees associated with the program.

Be Patient

Improving your credit score takes time and effort, so be patient and make it a priority to stick to a credit-building strategy that will serve you over the long term.

Interest rate

What are the Benefits of Having a 900 Credit Score in Canada?

Having a top credit score will have a positive impact on your financial health and open up new borrowing opportunities and promote financial growth. Here are just some of the ways having an excellent credit score of 900 can be beneficial:

Better interest rates

Individuals with excellent credit scores are often given better interest rates on loans like mortgages. Having lower interest rates can save you hundreds if not thousands of dollars over the long term and will help ensure you can always keep your debt at manageable levels.

Increased borrowing power

People with excellent credit scores often have a much easier time borrowing larger sums of money than those with lower scores. Having access to a bigger pool of funds (not to mention at a lower rate of interest) can be useful if you’re looking to make large purchases, including things like a home or a car.

More favourable terms

Your credit score helps lenders decide what terms to use in your loan agreement. Lenders may be more willing to offer favorable terms to individuals with excellent credit scores, such as lower down payments, longer repayment periods, or even lower monthly payments.

Improved financial opportunities

A high credit score can increase your chances of getting approved for loans and credit products, such as mortgages, auto loans, and premium credit cards.

Easier loan approvals

Individuals with excellent credit scores are often able to get approved for loans faster, more easily and with less hassle than those with lower scores.

Lower insurance premiums

Insurance companies sometimes give lower premiums to people with good credit scores because they are seen as lower risk.

Easy rental application process

When looking for an apartment rental, property managers and landlords do credit checks to ensure potential renters are creditworthy. A high credit score can help make the rental application process easier and increase your chances of getting approved.

Better job opportunities

Some employers take a look at a potential employee’s credit score before making hiring decisions, especially for security, financial and management positions. The higher your score, the better chance you’ll have of getting hired.

The Bottom Line

It’s very difficult to achieve a perfect credit score of 900. To do so a person would need to demonstrate a long history of managing their credit responsibly. They would need to have years of consistently paying bills on time, keeping credit utilization below 30%, regularly checking their credit report and nurturing healthy financial habits. Though it’s difficult, that doesn’t mean that a credit score of 900 isn’t worth striving for. As long as you manage your personal finances wisely, over time you could develop an excellent credit score and may just reach that coveted 900 (or at least come very close!).

Sandra MacGregor
Sandra MacGregor
Personal Finance Writer
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Sandra MacGregor is a professional writer who specializes in topics such as finance, travel, health, and lifestyle. Her work has been featured in the Toronto Star, the Montreal Gazette, and the New York Times. She is a regular contributor to the Borrowell blog.

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