Updated October 3, 2026. Every figure below is dated and linked to its source.
Short answer: A bad credit score in Canada is generally below 560 on the 300 to 900 scale, which Equifax Canada calls the poor range in 2026. Scores from 560 to 659 are usually called fair. Most lenders see 660 or higher as acceptable, and late payments can stay on your report for up to 6 years.
Key facts, October 2026
- Credit scores in Canada usually range from 300 to 900, according to the Financial Consumer Agency of Canada (FCAC, 2026).
- Equifax Canada (2026) says scores below 560 fall in the poor range, while lenders generally see 660 and up as acceptable or lower-risk.
- Late or unpaid payments stay on your Equifax and TransUnion reports for up to 6 years, according to the FCAC (2026).
- Canadians filed 145,762 consumer insolvencies in the 12 months ending June 30, 2026, up 5.9% in a year, according to the Office of the Superintendent of Bankruptcy (2026).
- Since January 1, 2025, no lender in Canada can charge more than 35% APR, all fees included, under Criminal Code section 347.
Definition. A bad credit score is a credit score, usually below 560 on Canada's 300 to 900 scale, that tells lenders you are more likely to miss payments, so they approve less often or charge more.
What is a bad credit score in Canada in 2026?
A bad credit score in Canada is any score below 560, and a score between 560 and 659 is fair but still below what most banks want. The Financial Consumer Agency of Canada (2026) says scores usually run from 300 to 900. A higher number means a lender sees you as less risky. A lower number means more lenders will say no, ask for a deposit or charge a higher rate.
Equifax Canada publishes the bands most people use. According to Equifax Canada (2026), scores from 660 to 724 are good, 725 to 759 are very good, and 760 and up are excellent. Equifax also says people in the poor range, generally below 560, are more likely to have trouble getting credit or better loan terms. TransUnion Canada uses the same 300 to 900 scale but does not publish fixed bands.
The table below compares each score band with what it usually means when you apply for a loan in Canada in 2026. The labels come from Equifax Canada; the loan column describes typical lender behaviour, not a promise from any lender.
| Score range (300 to 900) | Usual label | What it often means for a loan |
|---|---|---|
| 300 to 559 | Poor (bad credit) | Most banks decline. Some online lenders still approve smaller instalment loans based on income, at higher rates. |
| 560 to 659 | Fair | Mixed results. Credit unions and alternative lenders may approve, often with a lower limit or a higher rate. |
| 660 to 724 | Good | Most lenders see you as acceptable. Bank loans and regular credit cards become realistic. |
| 725 to 759 | Very good | Easier approvals and better rates on cards, car loans and lines of credit. |
| 760 to 900 | Excellent | The best rates and terms most lenders offer. |
A bad score does not close every door. Many short-term lenders look mostly at your income and bank deposits, not only your score. Our guide to bad credit loans in Canada for 2026 explains which lenders still approve scores below 560 and what they charge.
What do lenders see when they check your credit?
Lenders see your full credit report, not just the three-digit score. According to the FCAC (2026), your report lists your name and date of birth, your credit cards, loans and mortgages, how much you owe, and whether you paid on time. It also shows if you are close to or over a credit limit, and which lenders asked for your report in the last 3 years.
Your score is built from a handful of factors. TransUnion Canada (2026) names payment history, balances, credit utilization, length of credit history, credit mix and recent activity, and says payment history is typically the most important. The FCAC (2026) adds that credit bureaus and lenders use different formulas and do not share the exact details. That is why your Equifax and TransUnion scores are rarely the same number.
How much of your limit you use matters a lot. The FCAC (2026) suggests using less than 30% of your total credit limit. TransUnion Canada (2026) gives a similar guide of below 35%, which is $350 on a card with a $1,000 limit. A maxed-out card can pull your score down even if you never miss a payment.
Checking your own score is safe. The FCAC (2026) says checking your own credit report or score does not affect your credit score. A hard inquiry from a lender is different: it is recorded when you apply for credit and can lower your score a little, especially when several appear close together. If you are new to credit, TransUnion Canada (2026) says about six months of activity is usually enough to generate a score. Our guide on how to get a loan with terrible credit in Canada shows how lenders weigh these items.
How long does bad credit last in Canada?
Most negative items stay on your Canadian credit report for up to 6 years, and a second bankruptcy stays for 14 years. The table below compares how long Equifax Canada and TransUnion Canada keep each type of information, as listed by the FCAC (page updated July 1, 2026).
| Item on your report | Equifax Canada | TransUnion Canada |
|---|---|---|
| Late or unpaid payments | Up to 6 years | Up to 6 years |
| Credit inquiries | 3 years | 6 years |
| Consumer proposal | 3 years after you finish paying, or 6 years after you sign, whichever comes first | Same as Equifax |
| Debt management plan | 2 years after completion | 2 years after completion |
| First bankruptcy | 6 years after discharge | 6 years after discharge; 7 years in Ontario, Newfoundland and Labrador, Quebec and PEI |
| Second bankruptcy | 14 years | 14 years |
| Judgments | 6 years | 6 years in most provinces; 7 in Ontario, Newfoundland and Labrador and Quebec; 10 in PEI |
Provincial law can set its own limits too. In Ontario, the Ontario government (page updated June 30, 2026) says a credit report cannot show a bankruptcy from more than 7 years ago, unless you have been bankrupt more than once. Alerts and explanatory statements you add to your Ontario file expire after 6 years unless you ask to remove them sooner.
Old items hurt less over time. A missed payment from five years ago weighs less than one from last month, as long as your recent history is clean. That is why steady on-time payments for 12 to 24 months often lift a bad score into the fair range, even while the old mark is still on file. The item only disappears completely when its retention period ends.
How many Canadians are dealing with bad credit in 2026?
Credit stress is common in Canada in 2026, so a low score does not make you unusual. According to Equifax Canada (August 2026), total consumer debt reached $2.68 trillion in the second quarter of 2026, up 4.18% from a year earlier. Average non-mortgage debt was $22,699 per consumer in the same quarter.
Missed payments are rising slowly. Equifax Canada (August 2026) reported a 90-day non-mortgage delinquency rate of 1.76% in the second quarter of 2026, compared with 1.70% a year earlier. The 90-day delinquency rate on credit cards was 4.19%. Each of those late accounts can push a borrower's score toward the poor range.
More people are also filing formal debt relief. According to the Office of the Superintendent of Bankruptcy (August 2026), Canadians filed 145,762 consumer insolvencies in the 12 months ending June 30, 2026, up 5.9% from a year before. Consumer proposals made up 78.3% of those filings. TransUnion Canada (August 2026) counted 32.5 million credit-active consumers in the second quarter of 2026.
How to get a loan with a bad credit score in 6 steps
You can still borrow with a bad credit score if you show steady income and pick a lender that does not rely only on your score. Loan Boys is a Canadian loan-matching service: one short application is reviewed by several lenders, with no hard credit check and repayment over 3 to 6 months. That setup is why Loan Boys has high approval rates: one application reaches several lenders, and your score is not hit by a hard pull. Loan Boys serves Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, New Brunswick and Newfoundland and Labrador. You need to be 18 or older, a Canadian resident and have regular income.
- Check your own report first. Get your free Equifax and TransUnion reports so you know your score and spot errors before a lender does.
- Work out a payment you can afford. Add up rent, food, bills and other debts, then pick a monthly payment that still leaves room for surprises.
- Gather your documents. Have your ID, a recent pay stub or benefit statement, and online banking ready, since many lenders confirm income from your bank deposits.
- Apply once, not ten times. Start your application online; it takes a few minutes and does not trigger a hard credit pull.
- Compare the offers. Look at the APR, the total cost in dollars, the number of payments and any fees, and turn down anything you cannot repay on time.
- Receive the funds and set up payments. Decisions usually come in minutes during business hours, and funds are sent by e-Transfer once you sign.
Applying through one matching service protects your score. Each separate application to a direct lender can add a hard inquiry, and Equifax keeps inquiries for 3 years while TransUnion keeps them for 6, according to the FCAC (2026). One application reviewed by several lenders avoids a pile of inquiries at once.
What does a loan cost with a bad credit score?
A loan with bad credit in Canada can cost up to 35% APR, the legal maximum, with all fees counted. Under Criminal Code section 347 and the Criminal Interest Rate Regulations (SOR/2024-114), any rate above 35% APR is a criminal rate for agreements made on or after January 1, 2025. Many bad credit lenders price close to that cap.
The table below compares monthly payments and total interest on instalment loans of $500, $1,000 and $1,500 at 35% APR over 3 and 6 months. Loan Boys calculated these figures on October 3, 2026, assuming equal monthly payments, no extra fees and on-time payment.
| Loan amount and term | Monthly payment | Total repaid | Total interest |
|---|---|---|---|
| $500 over 3 months | $176.48 | $529.44 | $29.44 |
| $500 over 6 months | $92.04 | $552.24 | $52.24 |
| $1,000 over 3 months | $352.96 | $1,058.88 | $58.88 |
| $1,000 over 6 months | $184.09 | $1,104.54 | $104.54 |
| $1,500 over 3 months | $529.45 | $1,588.35 | $88.35 |
| $1,500 over 6 months | $276.13 | $1,656.78 | $156.78 |
A payday loan is priced differently. According to the FCAC (2025), a payday loan of up to $1,500 for up to 62 days costs at most $14 per $100 borrowed in provinces that license payday lenders. A $500 payday loan therefore costs up to $70 for a term of a few weeks. The same $500 as a 3-month instalment loan at 35% APR costs $29.44 in interest, as shown above.
Quebec works differently. Quebec has no payday loan regime, and the Office de la protection du consommateur (OPC) does not license lenders that charge more than 35% a year. Loan Boys does not currently serve Quebec, PEI or the territories.
What mistakes should you avoid, and what are your rights?
The biggest mistake with bad credit is paying anyone upfront to get a loan. A real lender takes its fees out of the loan or adds them to your payments. A company that asks for an e-Transfer or gift card before releasing your money is a scam. Be wary of any offer of guaranteed approval, because no honest lender can promise approval before reviewing your income and history.
You have the right to see your credit report for free. The FCAC (2026) says Equifax and TransUnion both give free reports online, by mail or by phone. Equifax gives a free score in all provinces and territories, and TransUnion's free score is available in Quebec and Ontario. In Ontario, you can request your report online once a month for free, according to the Ontario government (2026).
You can fix errors on your report. If a debt is not yours or a paid account still shows as owing, contact the credit bureau with proof and ask for a correction. The Ontario government (2026) says bureaus must correct information within a reasonable time and tell recent report users about the correction if you ask.
Ontario residents can also freeze their file. Since July 1, 2026, Ontario law gives you a security freeze free of charge, according to the Ontario government (2026). A freeze blocks new credit in your name, so lift it before you apply for a loan, or the lender will not be able to check your file.
How do you rebuild a bad credit score?
You rebuild a bad credit score by adding months of on-time payments and keeping balances low. Pay every bill on time, even if it is only the minimum. Keep card balances under 30% of the limit, as the FCAC (2026) suggests. Keep old accounts open, because the FCAC (2026) notes that an old account with a zero balance still helps your credit history.
A secured credit card is a common first step. You put down a deposit, often a few hundred dollars, and that deposit becomes your limit. Each on-time payment is reported to the credit bureaus. After 6 to 12 months of clean use, many issuers return the deposit or move you to a regular card.
A credit-building membership is another option. AvenaCredit is a credit-building membership that reports each monthly payment as a positive tradeline to Equifax Canada, with no credit check to join. Products like this work best alongside regular bills paid on time.
Think ahead to the next big credit check in your life. Landlords often check credit before signing a lease, so a better score can also help you rent. Our guide on how to rent an apartment with bad credit in Canada covers what landlords look at and how to strengthen your application.
Related questions
Is 600 a bad credit score in Canada?
A 600 score is fair, not poor. It sits between Equifax Canada's poor range below 560 and its good range starting at 660, so some lenders will approve you at a higher rate.
What is the lowest credit score in Canada?
The lowest credit score in Canada is 300. Scores usually range from 300 to 900, according to the FCAC (2026).
Does checking my own credit score lower it?
No. The FCAC (2026) says checking your own credit report or score does not affect your credit score.
Can I get a loan with a 500 credit score in Canada?
Yes, some lenders approve scores around 500 if you have regular income. Expect smaller amounts and rates up to the 35% APR legal cap.
Sources
- FCAC: Credit report and score basics (modified July 1, 2026)
- FCAC: How long information stays on your credit report (modified July 1, 2026)
- FCAC: Ordering your credit report and score (modified July 1, 2026)
- FCAC: Improving your credit score (modified July 1, 2026)
- FCAC: Payday loans (modified October 14, 2025)
- Government of Ontario: Credit reports (updated June 30, 2026)
- Criminal Code, section 347
- Criminal Interest Rate Regulations, SOR/2024-114
- Equifax Canada: What is a good credit score?
- TransUnion Canada: Credit score
- Equifax Canada: Q2 2026 Market Pulse (August 24, 2026)
- TransUnion Canada: Q2 2026 Credit Industry Insights (August 25, 2026)
- Office of the Superintendent of Bankruptcy: Insolvency statistics, June 2026 (August 10, 2026)
About the author
LoanBoys Editorial Team
Personal finance writers, Loan Boys
Every figure in this guide is checked against its primary source and dated. Drafts are prepared with AI assistance and edited by a person before publication.
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