What Is the Average Credit Score by Age in Canada?

Credit scores are a litmus test for a consumer’s creditworthiness as they reveal how well they manage their finances, especially cash flow and loan payments.

For this reason, lenders, insurance companies, and other interested financial institutions assess your credit score to determine your eligibility for different types of credit products and the terms and payment rates you can safely meet.

However, you can better understand your chances of success by looking at the average credit score by age in Canada to compare yourself to similar applicants.

Below, we go over that topic in detail!

What Is a Credit Score?

Taking the form of a three-digit number, your credit score is an indicator of your ability to live with and handle various credit products successfully.

The country’s leading credit bureaus—Equifax and TransUnion—calculate your credit score based on information in your credit report, which they also compile by collecting and analyzing your financial experiences with Canadian lenders.

As a general rule of thumb, higher credit scores unlock better loan products at lower rates since they prove applicants can quickly pay back what they owe.

What’s the Average Credit Score by Age in Canada?

First of all, note that the latest 2022 research conducted by Borrowell revealed that Canada’s average credit score across all groups is around 672.

On the standard credit score scale of 300 to 900, a score of 672 typically belongs in the ‘Good’ range, as it opens up most credit products, albeit at suboptimal terms.

In general, the credit score average increases with age. In fact, while consumers aged 18–25 averaged a score of 692 in late 2018, those over 65 years of age had over 750.

That said, let’s look at the results of the Equifax generational survey conducted in 2018—the last reliable research looking at credit scores across age groups:

Age Group  Average Credit Score
18–25 692
26–35: 697
36–45 710
46–55 718
56–65 737
65 and above  750

Note: Only the youngest consumer group has seen an increase in the average scores within the ten years leading to the survey. Every other group has experienced a slight decline.

Why Review the Average Credit Scores by Age?

Reviewing the average credit score by age before applying for credit is essential as you gain invaluable insight into how you compare to other candidates. If you discover you are below the average, you can work on improving your credit score before applying.

However, this credit score age classification is vital for other reasons, too:

  1. Helps you identify credit score issues—if you notice you are well below the average in your age group, you can start an investigation to determine the problem, especially if you believe your actions did not contribute to such a large drop; sometimes, issues arise due to identity theft and/or incorrect data collection and processing;
  2. Helps you plan a financial strategy—after breaking down your detailed credit score, you can see in which financial areas you can improve the most to bring your score on par with your peers quickly; you’ll also have a much easier time devising a strategy that helps you meet your exact goals, such as getting a car or a home loan;
  3. Helps you identify living standard changes—by monitoring the country’s average credit scores, you can notice changes in the standard of living; moreover, by comparing your scores to older groups, you’ll know when you can expect to become eligible for certain credit products since scores typically increase the older you get;
  4. Helps you develop responsible debt habits—if you see your peers have better scores than you, you may become motivated to work on improving your score by implementing sensible financial habits, such as reducing your credit utilization, staying on top of all your payments, and building up a varied credit history.

Note: The main reason why credit scores increase with age is the credit experience you gain as you get older, which is one of the main factors in your credit report.

Wrapping Up

When looking up your credit score in Canada, you should compare it to the scores of your peers, other age groups, and even the credit scores of consumers in other provinces. By doing so, you’ll discover several issues and opportunities that will help you improve your score, find the best loan products, and improve your overall living standard.