What Is a Bad Credit Score in Canada?

In Canada, credit scores generally range from 300 to 900.

A score below about 660 is usually considered below the good-credit range.

Scores under 600 can make it harder to qualify for loans, credit cards or favourable interest rates.

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What Credit Score Is Considered Bad in Canada?

There is no single official cutoff used by every lender.

A general way to think about Canadian credit scores is:

• 760 to 900: excellent
• 725 to 759: very good
• 660 to 724: good
• 560 to 659: fair
• 300 to 559: poor

Lenders may use their own criteria, so the same score can be treated differently depending on the product you apply for.

What Happens If You Have Bad Credit?

A lower credit score can make borrowing more difficult.

You may face:

• Higher interest rates
• Lower credit limits
• Fewer credit card options
• Larger security deposits
• More difficulty qualifying for loans
• More restrictive borrowing terms

A low score does not mean you cannot get credit. It usually means lenders may view you as a higher-risk borrower.

What Causes a Bad Credit Score?

Common causes include:

• Late or missed payments
• High credit card balances
• Accounts sent to collections
• Defaults
• Too many recent credit applications
• Limited credit history

Payment history and how much credit you use can have a significant effect on your score.

Can You Improve a Bad Credit Score?

Yes.

Focus on:

• Making every payment on time
• Paying down outstanding balances
• Keeping credit utilization low
• Avoiding unnecessary credit applications
• Reviewing your credit reports for errors
• Keeping older accounts in good standing

Credit improvement usually happens gradually rather than immediately.

How Long Does It Take to Improve Bad Credit?

There is no fixed timeline.

Someone with high credit card balances may see improvement relatively quickly after paying them down.

More serious issues such as collections, defaults or repeated missed payments can take longer to recover from.

Your progress depends on what is currently affecting your credit report.

Is 600 a Bad Credit Score in Canada?

A score of 600 is generally considered fair rather than good.

You may still qualify for some credit products, but you may receive higher interest rates or less favourable terms.

Improving your score toward 660 or higher can give you access to more borrowing options.

Is 500 a Bad Credit Score?

Yes.

A score around 500 is generally considered poor.

Traditional unsecured credit products may be harder to qualify for at this level.

Secured credit cards or credit-building products may be easier to access while you work on improving your credit history.

What Is a Good Credit Score to Aim For?

A score of 660 or higher is generally a useful benchmark because it falls within the good-credit range.

Higher scores can improve your chances of qualifying for competitive rates and better credit products.

The goal should not be reaching 900. Focus on maintaining strong payment habits, keeping debt manageable and building a healthy credit history over time.