What is the highest credit score?

If you’ve ever found yourself wondering what the highest credit score in Canada’s rating system is, you’re in for more than one answer. Now, numerically speaking, the highest score you can achieve is 900. But there’s more to that number.

In Canada, you should look more at credit score ranges than actual numbers. For instance, if you have a score of 750 or up, you’re part of the “great” credit score rating. What this means is, that at this level, while 900 is indeed the highest score, a borrower with a score of 750 will have no problem getting the same benefits.

That is what makes the key difference – it’s the tier that counts most, not the highest credit score.

Now here is what not too many Canadians are aware of: just because you pay all your bills on time (and also pay more than the minimum monthly payment), they assume they have the highest credit score available.

Sure would be nice if that’s the way it works, but most Canadians, even the ones who make the wisest money management decisions, actually find themselves in the “good” credit category. The reason for this is debt.

67% of Canadians own homes and most of those homeowners still pay a mortgage on their properties. Even if they make all of their mortgage payments on time, it doesn’t change the fact that they are carrying a debt (and a very large one at that).

Another large loan that keeps most Canadians from having the highest credit score are auto loans. The average cost of a vehicle in Canada was found to be $38,080. This debt is large enough to be seen by lenders as a large liability.

At the end of the day, if you find yourself in the “good” credit category, the highest credit score tier is something to shoot for, but not essential. See, if you hold a mortgage or auto loan or both, there really is nothing you can do about your present credit rating until you pay those loans off.

Once you do pay those loans off, your credit history will look fantastic and you’ll find yourself in the great credit category.

The great news about Canada’s credit rating structure is that if you presently have fair to bad credit, you can find yourself with the highest credit score in just a few years. Past mistakes are more easily forgiven in Canada and consumers wanting a second chance have that option open to them.

All it takes to go from the lowest credit score to the highest is some careful planning and the discipline to stick with that plan and doing that can completely turn things around for your credit score.

If you find that having too many debts scattered across several lenders is the reason your credit score is low, be sure to contact us for a free, no-obligations consultation call. You can speak to one of our loan specialists and learn why and how a debt consolidation loan can help you achieve a higher credit rating.

Call our offices from Monday to Friday, toll-free, at: (866) 689-0091