In Canada, a credit score is a number that summarises how you have handled credit. Scores generally run on a scale from 300 to 900, and the FCAC explains the factors that affect them.

Factors that generally affect a Canadian credit score

Factor	How it generally affects a score
Payment history	Paying on time generally helps; missed or late payments generally hurt.
Credit utilization	Using a high share of your available revolving credit can weigh on a score.
Length of credit history	A longer, well-managed history can support a score.
Credit mix	A mix of credit types can help, though it is usually a smaller factor.
New credit inquiries	Several applications in a short period can be a signal of financial stress.

A credit score is one of the main tools Canadian lenders use to decide whether to lend and on what terms. It is calculated from the information in your credit report, and the two national bureaus each use their own scoring models, so the same person can have more than one score. This page explains the general range, the factors that tend to move a score, and how co-signing can affect both the borrower and the co-signer.

What a credit score is

The Financial Consumer Agency of Canada explains that a credit score is a number, generally on a scale from 300 to 900 in Canada, that reflects how you have managed credit. A higher score generally indicates lower risk to a lender. Because the score is derived from your credit report, the accuracy of that report matters: if the report contains errors, the score built from it can be wrong too.

A score is not a single, universal number. Equifax Canada and TransUnion Canada each produce scores, and individual lenders may use their own models or a version of a bureau model. That is why checking one score and then applying somewhere else can produce different results. The FCAC's credit reports and credit scores page is the authoritative starting point.

Factors that generally affect a score

Credit-scoring models weigh several categories of information. While the exact weights are proprietary and differ between bureaus, the broad factors are well established and are described by the FCAC. Payment history is usually the most important: paying on time helps, and missed or late payments hurt. Credit utilization, meaning how much of your available revolving credit you use, is also significant; consistently using a high share of your limits can weigh on a score.

Other factors include the length of your credit history, the mix of credit products you hold, and how often you apply for new credit. A longer, well-managed history can support a score, and a mix of credit types can help, though it is usually a smaller factor than payment history and utilization. Several applications in a short period can be read as a sign of financial stress. The table on this page summarises these factors.

How co-signing shows up on a credit report

When you co-sign a loan, the account can be reported on your credit report as well as the primary borrower's. That means the payment history on the account can affect your score, for better or worse. If the borrower pays on time, the account may contribute positively. If the borrower misses payments, the missed payments can appear on your report and can hurt your score, even though you were not the person who received the money.

Co-signing can also affect your borrowing capacity. Because the debt may be counted in your total obligations, a lender assessing your next application may treat you as carrying more debt than you would otherwise. If you are planning to apply for a mortgage or another loan, it is worth understanding how the co-signed account is reported before you apply. A release from the loan, if the lender offers one, may change how the account is reported going forward.

How to use this information

1. Request your credit report from both national bureaus so you can compare what each holds.
2. Check the report for errors, such as accounts that are not yours or payments reported late in error.
3. If you find an error, dispute it with the bureau that produced the report and keep records of the dispute.
4. Review your utilization and consider whether it is higher than you intended.
5. Before co-signing, ask how the account will be reported on your file.
6. If you have co-signed, monitor the account so you learn about problems early.

Common mistakes

Scores are useful, but they are easy to misread. A single score is a snapshot, not a verdict, and it is produced by a particular model at a particular time. Common mistakes include assuming all scores are the same, ignoring errors in the underlying report, and co-signing without checking how the account will be reported. It is also a mistake to assume that a good score guarantees approval, because lenders also assess income, existing debts, and the specific product applied for.

• Do not assume one bureau's score matches the other's.
• Do not ignore the report; fix errors before they affect an application.
• Do not co-sign without confirming how the account is reported on your file.
• Do not treat a good score as a guarantee of approval.
• Do not apply for several products at once without understanding the effect on your report.

It helps to separate three things that are often confused: the credit report, which is the record; the credit score, which is a number derived from that record; and the lender's decision, which combines the score with income, debts, and the specific product. Improving your position usually means working on the record, because the record is what the score is built from. A clean record with a modest score can be more useful than a high score sitting on top of errors.

If you are rebuilding credit, the same factors apply in reverse. Consistent on-time payments, lower utilization, and time are the levers most within your control. There is no legitimate shortcut that changes a score overnight, and services that promise one should be treated with caution. The FCAC's guidance is a reliable, free place to start, and it explains how the bureaus and lenders use the information they hold.

Finally, remember that a score is a snapshot produced by a particular model at a particular time. It can change as your balances change, as accounts age, and as new information is reported. For that reason, a single score is less useful than a habit of reviewing your reports regularly and correcting errors as you find them.