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What Does Your Credit Score Range Really Mean?

A credit score is a number that suggests your credibility in terms of paying off debts like credit card bills, student loans, car loans, mortgages, etc. It helps banks and financial institutes to read your financial credibility and helps them make decisions while issuing any credit to you. Though have you ever read your credit report and wonder what does your credit score range means? How is it determined? What the letters and numbers on it translate to? Well, that’s what I am going to cover in this post. 

In Canada, Equifax and TransUnion are the two credit score provider agencies. They calculate the credit score on the basis of debt owed, payment history, credit mix, and more. A lower credit score can make borrowing money for you a tough task.

Do you know, 660 is the average credit score in Canada?

Important Factors for Calculating Credit Score

Here is a list of factors that you should keep in mind if you want to have or maintain a good credit score. 

Your Repayment History

As simple as it sounds, it contributes 35 percent to your credit score calculation. Your consistency would show itself here. This will reflect how frequent you are in paying back your creditors. An interesting fact here is, if you miss a payment this will fall down significantly if you have a higher credit score range, but if your credit rating is below average, it won’t reduce that rapidly. 

Your Credit Card Use

This is the second biggest element and contributes 30 percent in making your credit score range. This part shows your credit card usage. It is said to be helpful if you keep the usage below 30 percent if you want to attain a higher credit rating. Also do not use the entire credit limit, having 10 percent unused is considered good. 

The Length of Your Credit History 

Usually, individuals using credit cards tend to have better credit ratings compared to the newbies and infrequent users. This factor consists of 15 percent importance in calculating your credit score range. 

Credit Score Soft and Hard Checks

Credit score checks are of two categories namely soft check and hard check. This factor consists of 10 percent weightage in credit score determination. When you check your credit score, it is considered a soft check and does not impact your ratings. While when there are too many checks because of your frequent application of loans or credit cards, it becomes a hard check. This can impact your credit score negatively. 

Your Credit Mix

Credit mix refers to the different types of debts you own. It impacts your credit score range by 10 percent. Here, the various categories of debts include bank loan, student loan, mortgage loan, car loan, your usage of credit card, etc. The more diversified your credit mix, the better for your credit score given that you pay it back on time. 

Your Payment Pattern

This refers to the way you pay back your credit dues such as minimum monthly payments, more than the minimum payment, full monthly payment, etc. 

Credit Score Range

The below are the various credit score ranges. 

741 – 900 = Excellent

690 – 740 = Good

660 – 689 = Average or Fair

575 – 659 = Below Average

300 – 574 = Poor

300-574: Poor 

Individuals falling in this category are the ones who have a very bad track record of paying their loans, debts, etc. They may even have declared bankruptcy. If your credit rating is in this range, you are likely to face challenges in procuring financial aids. 

575-659: Below Average

This category of credit score attracts a higher interest rate if you get your application for debt approved. Also, this score range may not provide you with credit card reward programs. But, it is not impossible to change the score; start early and look after your payment frequency. 

660- 689: Average or Fair

This is a good range of credit scores. 660 is the average Canadian credit score, though different provinces have different average credit scores. This scoring range would provide you great advantages like unsecured credit cards, low-interest rates, etc. This score comes when an individual has defaulted on payment once or more than once or the payments are late occasionally. 

690-740: Good

If you have this credit score, amazing! It tells that you are responsible for your debt payments and there are hardly any delays from your side. This would provide you with loans and credit very easily and interest rates would also be lower. You are likely to receive rewards or cashback cards, too. 

741-900: Excellent 

This is the highest credit rating range. If you are in this range, you would get credit at a very low interest rate. It says that there are no late payments and you pay your monthly debt in full. This credit score range would ensure easy access to debt if needed. 

What Does Your Credit Score Range Describe?

Your credit report has numerous details on it some of which are easier to understand, while some, you may not even know the meaning of. This information is divided into four parts as stated below. 

Personal Details

  • Your Name
  • The birth date 
  • Your existing and previous phone number(s)
  • The social insurance number (SIN) 
  • Your existing and previous address(s)
  • Details of your driver’s license 
  • Your passport number 
  • Information related to your existing and previous employer(s)

Credit Details

  • Cell phone and internet accounts
  • Credit accounts’ transactions such as credit cards, personal or car loans, etc.
  • Details on bankruptcy, consolidation, debt programs, and more
  • Liens
  • Any credit requests from lenders, creditors, employers, landlords, etc.
  • Credit accounts in collections
  • Legal judgments
  • Identity verification
  • Fraud alerts
  • Any kind of closed accounts due to any suspicious fraudulent activity done by the account holder 

There is also a number and a letter allotted to the credit account, and this is what it means. 


0The account is too new to give ratings.
1The account has been paid off on time. 
2Payment is late by 31 to 59 days.
3Payment is late by 60 to 89 days.
4Payment is late by 90 to 119 days. 
5Payment is late by more than 120 days.
6The account is not in use.
7The account is linked with a consumer proposal, debt management program, or consolidation.
8The account linked with a repossession.
9The account is in collections or bankruptcy.


IInstallment This is an installment type of account that gets paid off in fixed sums at a decided date. Take. car loan for instance.
OOpenThis type of account can be utilized for a pre-decided limit. I,e, a line of credit. 
RRevolving Credit cards are an example of this type of account. As the name suggests, here the amount may vary based on how much limit a user used up in a month. 
MMortgageThis is optional based on the credit bureau you choose to get your credit report, but “M” is written to show that it is a mortgage account.

Your credit score range may signify any of these depending on the type of usage you have and the type of credit you have issued. Also, remember that even if your credit score is not what you expect it to be, you always have the ability to change it for the better. Control your finances, and impose the habit of paying debts on time, and the rest will fall into place.


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Important Factors For Calculating Your Credit Score


Devanshee Dave

Devanshee is a staff writer at She is a finance enthusiast and has completed her Master’s degree in Mass Communication & Journalism. She has worked as a journalist in a local business newspaper, multiple start-ups as well as finance and economy-related online media houses.

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