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Interpretation of the credit score

The credit score is a single number used by the lender to help determine whether or not to grant a loan. The number reflects information derived from the borrower’s credit history. It is based on the principle that the quality of a borrower’s credit management in the past provides an indication of the quality of that management in the future. Equifax generates a credit score known as the Beacon score.

Generally speaking, the higher the credit score, the more likely the potential borrower is to repay the loan, and the lower the risk for the lender.

Credit scores range from 300 to 900 points, with 900 being the highest.

Lenders require different credit scores for different mortgage products. Generally speaking, conventional mortgage products require a credit score of around 660.

Numbers and their meaning

0  — Too new to be rated / Approved, but not yet in use

1 — Payment within 30 days of invoice date / Payment as agreed

2 — Late payment: 31-59 days late

3 — Late payment: 60-89 days late

4 — Late payment: 90-119 days late

5 — Late payment: Over 120 days late, but not yet rated “9”

6 — This rating is not used

7 — Regular payments are made under a merger order, an orderly payment of debts, a consumer proposal or a debt management program with a credit counselling agency.

8 — Repossession

9 — Write-off for "bad debt" / Referral to a collection agency / Bankruptcy

Commercial credit report

A commercial credit report must be obtained if the applicant’s main income comes from a business in which he owns a share of more than 25%. The report may be omitted if the applicant provides professional services in the medical, dental, accounting or legal fields.


Last updated on: December 18, 2023
Reference number: 266066