Personal Finance

Can someone please explain the credit score inconsistency?

  • Last Updated:
  • Apr 24th, 2020 4:21 pm
Sep 10, 2019
8 posts

Can someone please explain the credit score inconsistency?

Hi all

I moved to Canada in January so I've been building my credit score from scratch by paying for every by credit card and paying the balance in full before the limit gets to 30%. In 3 months, my credit score is now 736, TransUnion have this listed as 'fair', which I would expect as I'm still building, but googling that score seems to suggest it's almost very good. I don't really understand how scores work in Canada...what am I missing?

I just want to understand where I am, the card is currently my only form of credit because I don't need a loan, utilities or a Canadian cell phone plan yet. I don't see the point in getting one of these just to boost my credit score if it is already starting to look ok. But if my score is actually 'fair' and I can't get much movement in this then I may consider other forms of credit to try to help this along.

5 replies
Deal Expert
Aug 22, 2011
35542 posts
Center of Universe
Don't worry too much about the score, as FIs uses their own scoring system.
Just look at the spread between Equifax and TransUnion to see how much of a joke these two credit bureaus are.

Just keep doing your thing.
Jr. Member
Apr 16, 2020
129 posts
Scores, other than giving you a ballpark idea of how a bank is going to view your credit, are largely meaningless and incongruous. Banks all have their internal risk calculations/analysis that they use to calculate whether or not they are willing to lend to you.
Deal Addict
User avatar
Oct 4, 2004
4189 posts
Never do anything you wouldn't otherwise do for the purposes of boosting a credit score. Pay your debts on time, every time; keep your utilization low; and don't apply for too much credit too fast. If you just do those three things, your credit will gradually improve. As already mentioned, each FI uses their own scoring criteria to generate a score- it may or may not be these CreditView and ERS 2.0 scores that you receive from third parties (like Borrowell and Credit Karma). It's most likely not the scores TransUnion and Equifax provide to you directly (old scoring model). Your credit history is far too limited for that 730 score to really mean anything. If you were to apply for a Line of Credit or Mortgage, they will scrutinize your lack of credit history. Someone with that same 730 score but with years of credit experience will be looked at more favourably than you. There's sometimes no rhyme or reason to why you have any particular score. Mine skyrocketed from mid-700's to 800+ when I opened a car loan because credit variety is good but is it actually? I just took on more debt with no evidence that I can/will service it. This happened on the first month the loan appeared on my report. Some lenders won't approve credit for those with an inquiry in last 90 days. My 800+ is a great indicator of good overall credit health but by no means guarantees anything. If my score were 600ish then it's a great indicator to look into why my score might be so low?
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Deal Fanatic
Apr 16, 2007
7979 posts
Financial District B…
PaulH99917 wrote: Hi all

I moved to Canada in January ...what am I missing?

But if my score is actually 'fair' and I can't get much movement in this then I may consider other forms of credit to try to help this along.

You just became 'known' to either one or both of the credit reporting entities in January.
What you're missing is years of payment history and credit mix.
To get that you need a time machine to jetson you ahead to 2022 or farther.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
User avatar
Dec 24, 2007
1501 posts
Don't sweat over the Credit's an overhyped measurement that lenders don't rely on exclusively. They look at a whole lot of other factors and not just a singular number. So you pay your credit cards with small balances on time, how's that translate to how you would perform paying down a large loan? Not much reliability as an indicator.