What Does a 900 Credit Score Mean in Canada? (2024)

A 900 credit score is perfect and basically the holy grail of scores. A credit score is a measure of your creditworthiness. It is a three-digit number that tells a lender if you are fit to be given a loan. A higher credit score shows that you are more likely to repay your debt as agreed than a person with a lower credit score.

In Canada, the credit score ranges organize credit scores into different risk categories from Poor to Excellent. A 900 credit score is the highest possible credit score indicating absolute creditworthiness because there is such a low risk the borrower will default.It indicates that they have passed all the credit benchmarks with flying colours.

Imagine the benefits and luxury perks of having a perfect credit score; such bliss! If you have the ideal credit score, the finance industry will aggressively compete for your business. Purchases, expenses, and investments will be a walk in the park for you. Here’s what a 900 credit score means in Canada and the benefits that come with it.

What does it mean to have a 900 credit score?

How would you feel if you checked your credit score for free and discovered it’s a whopping 900? Super excited and proud of your achievements? Maybe even a little bit shocked?What did you do, that you can keep doing, in order to achieve the holy grail of scores?

The two leading credit bureaus in Canada, Equifax and TransUnion, use benchmarks to calculate your credit score which include:

  • Credit Utilization Ratio
  • Payment Behaviour
  • Length of credit history
  • Credit Inquiries
  • Public Records
  • Credit Mix

Many believe that it is impossible to perfectly satisfy all these conditions and get a credit score of 900. Others believe it is possible, but exceedingly rare. In fact, approximately 1% of people have a credit score of 850 or more, and an even smaller portion of Canadians could achieve 900. Either way, a 900 credit score is an excellent score and the best there is.

How does my credit score affect me?

A credit score impacts whether or not you can access money when you need it, and essentially, your quality of life. Potential employers, lenders, insurance providers, and most financial institutions use your credit score to assess your creditworthiness and even your character. This reality implies that a significant part of your life is impacted by how good or bad your credit score is.

If you have a good credit score, you should still work on levelling up to an excellent score, like 900 if you can, because your credit score can determine your standard of living.

1. Access to credit & lending

If you need access to credit, like a personal loan or line of credit, for example, your credit score can either make it possible or stand in the way. Your credit score helps determine whether or not your application will be approved, how much money you qualify for, and the interest you get.

If you have a lower credit score, your interest rate will be higher with a lower credit limit. If you have a higher credit score, your interest rate will be lower and could qualify you for a larger loan.

Consequently, your credit score has the power to limit your borrowing power and cause you to receive a smaller loan than what you actually need. A very poor credit score could prevent you from getting approved for lending altogether. A higher credit score, on the other hand, will leave you with better loan options and more of them.

2. Access to the best credit cards

Having a credit score of 900 can be incredibly advantageous when applying for the best credit cards. Credit card companies often reserve their top-tier, premium or black credit cards for applicants with exceptional credit scores. These premium cards come with a range of benefits, such as higher credit limits, generous rewards programs, exclusive perks like airport lounge access, concierge services, and travel insurance. With a 900 credit score, you are more likely to qualify for these elite cards. For example, the American Express Platinum card comes with an impressive range of benefits.

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But you don’t have to focus on premium and sometimes expensive cards. Have you heard of credit card churning? A high credit score not only increases your chances of approval for the best credit cards but also expedites the approval process. You can use it to open multiple credit card accounts with the intention of reaping the welcome rewards such as cashback, points, or miles. Every now and then, credit card companies change their welcome offers. They compete to attract clients. Calculate how much you have to pay (in fees but also spending requirements) in order to get the rewards. If the balance is interesting, go for it! Many people use this hack to travel for free.

3. Lower insurance premiums

Having an excellent credit score can positively impact your insurance premiums in several ways. Basically, you’ll get lower premiums. Insurance companies often use credit scores as a factor in determining insurance premiums. Individuals with excellent credit scores are typically seen as less risky to insurers. Therefore, they are more likely to receive lower insurance premiums compared to those with lower credit scores.

What you may not know is that insurers believe that individuals with good credit are less likely to file insurance claims. This perception of reduced risk can lead to lower premiums and discounts. A strong credit history can also make it easier for you to qualify for higher coverage limits or more comprehensive insurance policies. This means you may have better protection against potential risks and liabilities.

Moreover, insurance companies may process your application more quickly if you have a high credit score. This can be especially beneficial when you need coverage in a hurry, such as for a new car purchase.

4. Employment

Have you ever had to consent to a credit check during a job interview? Potential employers can check your credit and the practice is becoming more common. The contents of your credit file can tell an employer a lot about your character. So, having a bad credit score could cost you a job!

5. Leasing or buying a car

In order to lease or buy a car, you may need to pass a credit check. When you apply for a lease or a car loan, most dealerships will check your credit too.It helps them determine if you can be trusted to take care of their asset and/or make your payments on time. If your credit is poor, they are more likely to deny your application.With a 900 credit score, you will certainly have access to 0% (or close to 0%) financing! This is great, as car prices are on the rise. At least, you won’t have to pay high interest on your purchase.

6. Finding a place to live

Before any landlord rents out their property to you, they must evaluate if you are a desirable renter. Many landlords will run a credit check as part of the application process. If you intend to own our place one day, you’l also have to go through a credit check to get a mortgage.

If your credit score is below average, you will have a hard time competing against other applicants with better credit. Landlords prefer tenants with good credit scores because it means they are less likely to default on their rent payments. If you’re a future owner of a house, you’ll want to secure those low rates on your mortgage. They’re only available to people with an excellent credit score. A low rate will save you hundreds of dollars every year, maybe more (depending on the amount borrowed).

What a 900 credit score can do for you

It might be hard and take many years to hit a 900 credit score, but you can do it. In the meantime, Equifax considers 800 and up an ‘excellent’ score too, so there’s nothing to feel bad about if you’re still in the 800 Club.

Let’s consider the benefits of having a perfect credit score. First and foremost, a 900 credit score can improve your lifestyle. It’s very unlikely anyone will deny your credit application with a high credit score, assuming you can afford the payments.

Instead, you will be the one having a hard time trying to pick the one that best suits your needs and goals. You won’t have a problem accessing the funds you need to achieve your goals.Clearly, a 900 credit score can open you up to a new world of possibilities to live your best life.

When you apply for loans, you will have better options and the power to choose from several options with the best terms and interest rates. Not to mention, a 900 credit score gives you access to some of the most prestigious credit cards on the market.

Ways to keep your credit score to an all-time high

If your credit score is in the 800s, there are things you can do to try to reach 900. Here are the best ways to increase your credit score:

1. Never miss a payment

If your credit score is already in the 800s, you probably already know that, but we can’t stress it enough: never miss a payment. To improve your credit score, you not only need to pay your bills and debt obligations before time, you need to make the full payment. Remember, a credit score is an indication of how trustworthy you are, and your payment behaviour tells lenders whether or not you honour your loan contracts.

2. Do not close your accounts

You need to show lenders how reliable you are on the long term. That is why you should not close old credit card accounts, even if you don’t use them very much anymore.

3. Reduce your credit utilization ratio

Your credit utilization ratio is a number that tells lenders how you handle easy-to-access credit from your credit cards and lines of credit. It measures how much you owe those specific credit products against the credit limit. For example, if your card has an amount of $10,000 on it and you charge up a balance of $3,000, then your credit utilization ratio is 35%.

A high credit utilization ratio shows that you are dependent on credit, which makes you look riskier to creditors because it could signal financial mismanagement or hardship. On the other hand, a ratio under 30% indicates that you do not depend on credit to live your life.

To lower your credit utilization ratio and boost your score, pay off your debts and credit card balances each month. For example, if you have a home equity line of credit, pay anything you owe on it (not simply the interest).

4. Increase your credit limit

Every credit card and line of credit comes with a credit limit, which is the maximum amount you can spend. If you owe a balance that is more than 35% of the credit limit, it hurts your credit score. For example, if you have a credit card with a $10,000 limit, you don’t want to carry a balance higher than $3,500 because it is 35% of $10,000.

If you use more than 35% of your actual limit, consider asking your credit card company to increase the limit. For example, increasing your credit card limit from $10,000 to $15,000 means that the same $3,500 balance is now about 23% of your credit limit. It’s pretty simple they’ll likely accept, given your excellent credit score!

Doing so will reduce the percentage of credit you use relative to your credit limit, and the higher limit can always come in handy in times of need.As long as you don’t charge more on the card and increase the balance, it will be useful to keep your credit score at an all-time high.

5. Apply for new credit

Every time you apply for credit and consent to a credit check, it is recorded on your credit report as a “hard check.” These inquiries can hurt your credit score, especially if there are several of them in a short period of time. You have to limite these inquiries, but at the same time, be mindful to keep a variety of credit types.

Credit mix counts for more or less 10% of your score. If your car loan is coming to an end, for example, consider replacing it with another loan. The idea is to have a mix of credit other than credit cards. However, if you have only one credit card, don’t hesitate to ask for a second one. We normally don’t encourage people to borrow more and more, but if you have a 900 score, you’re probably good for it!

6. Check your credit file often

The information in your credit file impacts your credit score, and that information is submitted to the credit bureaus by human beings. Mistakes happen and they can hurt your credit. Check your credit often to make sure everything is accurate and up to date.

You can use a free app like Borrowell to check your own credit as often as you want without hurting it. If you find a mistake, you can dispute errors on your Equifax report and errors on your TransUnion report.

Conclusion

A perfect credit score is not a myth and you can achieve it too. However, it will take a lot of time and discipline; patience is key. You can start to build your own perfect credit score with the little financial decisions you make today. Take time to sit back, strategize and visualize your goals. Hard work pays off.So keep up the excellent work, you’re on to something excellent!

FAQs about a 900 credit score

1. How to get a 900 credit score in Canada?

In order to get a 900 credit score in Canada, you must have an impeccable record when it comes to making payments and staying out of credit card debt. You also need time on your side, since it takes many years to build up a perfect credit score.Finally, you will need to manage different types of credit, and not apply for multiple loans in a short time.

2. Does anyone have a 900 credit score in Canada?

Yes, there are people in Canada who have a perfect 900 credit score. However, credit scores are in constant flux from one month to the next. It’s hard to know how many people have a perfect 900 credit score at any given time. But we do know that 61%of Canadians have a very good credit score or better.

3. Is a 900 credit score good?

Yes indeed! A 900 credit score is the best score you can get. It is at an all-time high and will ensure you have maximum financial freedom.

4. How many people have a 900 credit score in Canada?

It’s hard to tell exactly how many people have a perfect 900 credit score in Canada. What we do know is that some of you, roughly 1%, have an excellent score above 850.

What Does a 900 Credit Score Mean in Canada? (2024)

FAQs

What Does a 900 Credit Score Mean in Canada? ›

Credit scores from 660 to 900 are generally considered good, very good, or excellent. There's no “magic number” to reach when it comes to receiving better loan rates and terms.

Is 900 a good credit score in Canada? ›

In Canada, your credit score ranges from 300 to 900, 900 being a perfect score. If you have a score between 780 and 900, that's excellent. If your score is between 700 and 780, that's considered a strong score and you shouldn't have too much trouble getting approved with a great rate.

How rare is a 900 credit score? ›

It's exceedingly rare for anyone to have a credit score over 900, as most credit scoring models have a maximum limit of 850, and even achieving that score is uncommon.

What is a good Canadian credit score? ›

A good credit score starts at 660

In Canada, scores above 660 are generally considered “good.” The higher your number, the more likely potential lenders will view you as a responsible borrower.

What is considered a bad credit score in Canada? ›

A score below 560 is generally considered to be a bad credit score in Canada, according to credit bureau Equifax. A score between 560 and 659 is often considered fair, while scores between 660 and 724 are considered to be an acceptable or good credit score.

Does anyone actually have a 900 credit score? ›

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

What's the average Canadian credit score? ›

The average credit score in Canada is around 680, which is deemed as "good" on the credit score scale. Everyone's scores can range widely based on their age, income, and spending habits, so it's essential to note that this average doesn't necessarily apply to every person.

What's the highest credit score in Canada? ›

If your goal is to achieve a perfect credit score, you'll have to aim for a score of 900. That's the highest FICO score available for the most widely used versions of both credit scoring models in Canada.

Has anyone gotten an 850 credit score? ›

Although a lot of people might like the idea of a perfect credit score, they'd likely have a hard time actually achieving it. In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data.

What is the average credit score in Canada by age? ›

Average Credit Score in Canada by Age
Age RangeAverage Credit ScoreCredit Range
18-25692Fair
26-35697Fair
36-45710Fair
46-55718Fair
2 more rows
Dec 29, 2023

Does US credit score matter in Canada? ›

Canadian lenders will not have access to your US credit score, and it will not factor into their decision to approve your credit application in Canada. Unfortunately, without your positive credit history from the US on your side, you may be limited as far as which Canadian credit cards you will be approved for.

What is a Tier 1 credit score in Canada? ›

Level 1 – Level 1 is assigned to scores of 800 and above. This is an exceptional credit. With Tier 1 credit, you can get the best interest rates, the highest credit limits and special rates that beat the market.

What can a 800 credit score get you in Canada? ›

If you have an 800 credit score and apply for loans, you are far more likely to get better terms and the lowest rates. In addition, you also have access to some of the best rewards credit cards and cash back credit cards on the market. With an 800 credit score, you qualify for almost every type of loan available.

What determines credit score in Canada? ›

The main factors involved in calculating a credit score are:

Your payment history. Your used credit vs. your available credit. The length of your credit history.

What is the lowest credit score to buy a house? ›

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

What is a good credit score to buy a house? ›

A 620 credit score is typically what you'll need to get a mortgage for a home purchase. Although you can buy a house with a credit score as low as 500, you'll pay a higher rate and make a larger down payment.

Is it possible to get an 850 credit score in Canada? ›

In Canada, 850 is an excellent credit score. If your credit score is at this level, congratulations! You're doing exceptionally well in managing your finances and credit.

Does anyone have an 850 credit score? ›

How many Americans have an 850 credit score? Only 1.31% of Americans with a FICO® Score have a perfect 850 credit score. While a score this high is rare among any demographic, older generations are more likely to have perfect credit. Baby boomers make up a whopping 59.4% of the people with an 850 credit score.

Can you have a 1000 credit score? ›

A credit score of 1,000 is not possible because the standard credit score range used by FICO and VantageScore is 300 to 850. Other credit scoring models have a high of 900 or 950, but they are industry-specific and only used by certain financial institutions.

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