What Is A Good Credit Score in Quebec?

Your credit score is a good indicator of your financial health. Calculated on a scale of 300 to 900, it reflects your ability to manage your debts and meet your financial commitments. The higher your score, the more confidence lenders have in you, making it easier to obtain loans, credit cards or mortgages at better interest rates.

Understanding how this score is calculated and knowing how to improve it can make all the difference to your financial plans.

What is a credit score in Quebec?

A credit score is a score given to each consumer to assess their financial reliability. It is calculated on a scale from 300 to 900, where a higher score indicates a lower risk for lenders. This rating reflects your ability to meet your commitments: pay your bills on time, manage your credit responsibly and maintain a reasonable level of debt.

Here are the main credit score ranges:

• 300 to 599: poor

• 600 to 659: fair

• 660 to 724: good

• 725 to 759: very good

• 760 to 900: excellent

In Quebec, the average score is generally between 680 and 700, which corresponds to a profile considered reliable by most financial institutions.

The two main agencies

In Canada, credit scoring is managed by two official agencies: Equifax and TransUnion.

These credit bureaus collect information transmitted by financial institutions, such as your credit cards, personal loans, lines of credit or mortgage payments.

Using this data, they draw up a personalised score based on your financial habits: regularity of payments, credit utilisation rate, length of history and number of recent applications.

Each agency may calculate a slightly different score, but the evaluation principles remain the same.

What factors influence your credit score?

Payment history

Your payment history is the most important factor in calculating your credit rating. It reflects your reliability in repaying your debts and meeting your financial commitments.

Every payment made on time boosts your score, whereas a delay of even a few days can lower it. Repeated late payments or accounts sent for collection have a particularly negative impact.

Credit utilisation rate

The credit utilization rate is the percentage of available credit you use.
To maintain a solid score, it's recommended not to exceed 30% of your total limits. For example, if your combined credit card limit is $10,000, it's best to keep your balance below $3,000.

A high utilisation rate suggests that you are over-reliant on credit, which can worry lenders.

The length of your credit history

The longevity of your history also plays an important role. The longer you've held active accounts, the more stability and consistency you demonstrate in managing your finances.

That's why it's often best not to close an old account without reason, even if you no longer use it regularly. This makes a positive contribution to the average length of your history.

New credit applications

Every time you make an official application for credit (new card or loan), a so-called "hard check" is entered on your file.

Too many applications in a short space of time can be seen as a sign of credit dependency or financial difficulty. To protect your credit score, avoid accumulating too many applications in a short period of time.

The diversity of your accounts

Lenders prefer to see a diversity of credit types: cards, personal loans, lines of credit or mortgages.

A varied portfolio demonstrates your ability to manage different financial commitments in a balanced way. However, there's no point in opening several accounts just to diversify: the quality of your management counts for much more than the quantity.

Why a good credit score is important

Easier access to finance

A good credit score is like a financial passport. Lending institutions interpret it as a guarantee of reliability and discipline.

With a solid rating, you have a better chance of obtaining a loan, credit card or mortgage, often with fewer conditions and faster approvals. On the other hand, a low score can limit your options or lead to refusals, even if your income is sufficient.

Long-term savings

A high score doesn't just make it easier to get credit: it reduces the cost of borrowing. Lenders reward good financial behaviour with better interest rates, which can mean thousands of dollars saved over the life of a car loan, line of credit or mortgage.

In other words, maintaining a good credit score means investing in your long-term financial stability.

An open door to other opportunities

Beyond loans, your credit score also influences other aspects of your daily life. Some leasing companies, employers and insurance companies check your credit rating before signing a contract, particularly for finance or management positions.

A good score sends out a signal of responsibility, reliability and seriousness - qualities sought by lenders and employers alike.

How can I improve my credit score?

Improving your credit rating takes consistency and good financial habits. A few simple actions can make a big difference over time:

• Pay your bills on time: the most important factor. Schedule reminders or automatic payments to avoid any delays.

• Reduce your debt ratio: try not to use more than 30% of your available credit and limit short-term debts.

• Avoid too many new applications: each official request for credit temporarily lowers your score.

• Monitor your credit report: check your Equifax and TransUnion reports at least once a year to correct any errors or suspicious activity.

• Keep your accounts open: keeping your old accounts helps to maintain a longer, more stable credit history.

What should you do if your credit score is low?

A low credit score is not inevitable. It simply reflects a financial history that needs to be improved. The important thing is to understand why your score has fallen and take concrete action to turn it around.

Understanding the cause

The first step is to analyse your credit file to identify the factors that have adversely affected your score.
The most common causes are :

• late or missed payments,

• excessive balances on your credit cards,

• or data errors (e.g., a closed account still shown as active).

You can obtain a free copy of your file each year from Equifax and TransUnion to identify any anomalies and request a correction if necessary.

Drawing up a recovery plan

Once the cause has been identified, you need to act methodically. If your debts have become difficult to manage, a financial adviser or licensed insolvency trustee can help you restructure your payments or negotiate agreements with your creditors.

The aim is to stabilise your situation without resorting to bankruptcy, while enabling you to rebuild your financial credibility.

A recovery plan may include :

• the debt consolidation,

• a consumer proposal,

• or simply a budget reorganization tailored to your income.

Demonstrating consistency

Rebuilding a credit score takes time, but every positive action counts.

Even after a financial incident, regular and on-time payments are the key to lasting improvement. In general, it takes between 12 and 24 months to see significant progress, provided you maintain good habits: pay your bills on time, keep your balances low and avoid unnecessary new credit applications.

With consistency and the right strategy, your score will gradually rise, paving the way for better financing conditions and renewed stability.