Credit score: what is “good”?

There is no single magic score that guarantees approval because lenders set their own cutoffs. TransUnion’s guidance is basically: higher is better, and each lender decides what it considers good or risky.

For mortgage buyers, this is the practical version:

• 680+ = usually a cleaner, stronger place to be for many buyers, and CMHC fact sheets commonly state that at least one borrower or guarantor on certain insured products must have a minimum score of 680.

• 600+ = CMHC announced in 2021 that at least one borrower or guarantor needed a score greater than or equal to 600 at the time of request for insurance under those reviewed underwriting criteria.

• 720+ = not an official government threshold, but in real life this is generally seen as strong because lenders usually prefer higher scores and lower perceived risk. That part is an inference from lender behavior and TransUnion’s “higher is better” guidance.

So the blunt answer:

• Below 600: rougher road

• 600 to 679: possible, but may be weaker or need stronger compensating factors

• 680+: solid target

• 720+: strong

What affects your credit score?

These are the big hitters:

• Payment history
  Paying on time matters a lot. FCAC says payment history is the most important factor in your credit score. Missed payments hurt. Repeated on-time payments help.

• Credit utilization
  FCAC says to try to use less than 30% of your available credit. Example: if your card limit is $5,000, try to keep the balance under $1,500. Lower is generally better.. FCAC = Financial Consumer Agency of Canada 

• High balances / being close to your limit
  FCAC says being close to your credit limit and carrying high outstanding debt can hurt your score.

• New credit applications
  Opening too many new accounts or applying too often can make you look risky. TransUnion specifically warns against mindlessly opening new accounts.

• Length of credit history
  Positive information on older accounts can help. FCAC notes positive account history can stay on your report for years, and that positive information may improve your score.

• Errors on your report
  Wrong balances, mystery accounts, late payments that were not actually late — all of that can drag you down for no good reason. FCAC recommends checking before applying for credit.

Best real-life hacks to improve your credit score

Not fake hacks. Real ones.

1) Pay every bill on time. Every time.

• This is the big one.

• Even one late payment can slap your score around.

• If you cannot pay in full, make at least the minimum payment so you do not get marked late. FCAC and TransUnion both say that helps avoid more damage.

2) Keep credit card usage under 30%

• FCAC says try to use less than 30% of available credit.

• Better yet for mortgage prep: aim lower if you can.

• Example:

  • Limit: $10,000

  • Good working target: under $3,000 total balance

  • Cleaner target before a mortgage application: even lower if possible

3) Pay down cards before the statement date, not just the due date

• This is a useful practical move.

• Why? Your reported balance is often what shows on the statement, not what you paid five minutes before the due date.

• This means you can technically pay on time but still look heavily used if the reported balance is high.

• This is an inference based on how reported balances and utilization affect scores. The score impact itself is supported by FCAC’s utilization guidance.

4) Stop applying for random credit

• No store cards.

• No “save 10% today” nonsense.

• No new financing plans just because the monthly payment looks cute.

• TransUnion says frequent applications for new cards may look irresponsible to creditors.

5) Do not close old accounts unless there is a real reason

• Older positive history can help your profile over time.

• FCAC notes positive information can remain and may help your score.

• Closing an old card can also shrink your total available credit, which can raise your utilization percentage. That second part is a practical inference from FCAC’s utilization rule.

6) Fix errors fast

• Pull your credit report.

• Look for:

  • wrong balances

  • accounts you do not recognize

  • late payments that are incorrect

  • duplicate accounts

  • outdated personal information

• FCAC says errors could lead to being refused credit or getting worse terms.

7) Keep making on-time payments over time

• Credit improvement is not usually a one-week makeover.

• FCAC says consistently paying on time over a longer period may improve your score.

8) Set up auto-pay for at least the minimum

• This is not a bureau rule; it is a survival tactic.

• One forgotten phone bill or credit card payment is a stupid way to tank your mortgage prep.

• The logic is simple: since payment history matters most, automation reduces the chance of a costly miss.

9) Attack revolving debt first

• Credit cards and unsecured lines of credit often hurt more because they keep your utilization high.

• Paying down revolving debt can improve both your credit profile and your mortgage debt ratios. FCAC says carrying balances, high outstanding debt, and being near limits can hurt your score.

10) Keep your payment plan realistic

• FCAC warns that if your repayment plan is too aggressive and causes missed payments, that can hurt your credit.

• Translation: a perfect spreadsheet that causes you to miss a real payment is not a plan. It is self-sabotage with stationery.

What hurts your score fast?

These are the repeat offenders:

• Late payments

• Maxed-out credit cards

• Going over your limit

• Too many new applications in a short period

• Carrying high debt balances

• Ignoring mistakes on your credit report

Best compact checklist: improve your credit score

• Pull your credit reports

• Fix errors immediately

• Pay every bill on time

• Set up auto-pay for minimums

• Keep credit use under 30%

• Pay balances down before statement dates

• Stop applying for new credit

• Pay down credit cards and lines of credit first

• Keep old accounts open if they are in good standing

• Keep doing this consistently for a few months

Best target if you are preparing for a mortgage

• Aim for 680 or higher

• Aim for low credit card balances

• Aim for zero missed payments

• Aim for no new unnecessary debt

• Aim for clean, boring financial behavior

Boring wins. Every time.
Mortgage lenders love boring.
Wildly unromantic, but true.