Average Credit Score By Age in Canada: Anyone attempting to get approved for a loan, credit card, housing, or job will find that having good credit is a useful tool. Given that it takes years to accumulate a good credit score, what is the average credit score by age?
The credit score of a 30-year-old with two credit cards, a mortgage, a car loan, and a stable work history differs significantly from that of an 18-year-old with their first credit card.
Although income and controlled or minimal debt are also significant factors, having good credit makes it easier to be approved for credit products and lowers your interest rate.
Access to low-cost credit can help you save money on a variety of financial objectives, including funding your college education, purchasing a home or vehicle, or buying a car. Your credit is very important, so it’s best to monitor and maintain it.
It can be difficult to forecast how your credit scores will change over time. Nobody can predict the future, so you could run into debt problems, lose your job, or file for bankruptcy.
Even though it’s never a good idea to compare your financial situation to someone else’s, knowing what the average credit score of Canadians in your age range is can be helpful.
Credit Scores: What Are They?
Your Canadian credit score, which ranges from 300 to 900, indicates your likelihood of making timely debt repayments. Your chances of being approved for credit and receiving lower interest rates increase with your score.
The data in your credit report is used to calculate your credit scores. Your credit score may vary based on the data in your credit report and the model used for credit scoring.
How Are Credit Scores Calculated?
Consider your credit products, such as credit cards, loans, lines of credit, etc., as your classes in school to help you visualize things more clearly. What happens if you pass your tests and finish your homework on time? At the end of the term, your grade improves.
However, you can notice a decline in your grades if you neglect to study and complete your homework. What comes next? Your GPA is calculated by adding up all of your grades. When you apply to universities and other schools, your chances of being accepted into the program of your choice are higher with a higher GPA.
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What is the Average Credit Score By Age in Canada?
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18 to 25: 692
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26 to 35: 697
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36 to 45: 710
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46 to 55: 718
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56 to 65: 737
Equifax’s generational survey found that credit scores evolve as people go through different stages. Let’s talk more about why credit scores differ based on your age.
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18 to 25: On average, individuals in this age group held a credit score of 692. Young adults with limited credit history often fall into this demographic.
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26 to 35: The average credit score for those aged between 26 and 35 was 697. Many people in this age bracket get credit cards and small loans to establish credit profiles.
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36 to 45: In the age range of 36 to 45, the average credit score increased to 710. Mortgages, car loans, and credit cards will likely have accumulated more substantial credit histories in this group.
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46 to 55: Individuals between 46 and 55 boasted an average credit score of 718. There’s a tendency for this age group to be financially stable, often with a better credit history.
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56 to 65: Credit scores continued to rise for those aged between 56 and 65, with an average score of 737. Long-term financial stability is usually a benefit for these people.
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65 and over: The highest average credit score was found among those aged 65 and over, with an impressive 750. Many of them have extensive financial experience and good credit.
What Qualifies As A Good Credit Score?
Credit scores in Canada range from 300 to 900. In general, the closer you are to 900, the better your credit score will be considered and the more likely it is that a lender will approve you. The majority of lenders will consider credit scores between:
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660 – 724: as good
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725 – 759: as very good
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760 – 900: as excellent
Those same lenders will also offer you a lower interest rate if you have a better credit score.
