One of the most important numbers in your financial life is your credit score. It tells lenders about your creditworthiness and can affect whether you get loans and credit cards. So, is 834 a good credit score in Canada? Let’s find out.
Understanding Credit Scores in Canada
In Canada, there are two main credit bureaus that assign credit scores – Equifax and TransUnion. They use proprietary formulas to calculate your score based on the information in your credit report. Scores range from 300 to 900, with higher scores indicating better credit health.
According to Equifax here is how Canadian credit scores break down
- 300 to 579 – Poor
- 580 to 669 – Fair
- 670 to 739 – Good
- 740 to 799 – Very Good
- 800 to 850 – Exceptional
So based on the above, a credit score of 834 falls in the “exceptional” range, which is the highest category.
The Benefits of an 834 Credit Score
An exceptional credit score like 834 unlocks access to the best rates and terms when borrowing money or getting approved for new credit. Here are some of the key benefits:
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Easier Approval: With a score of 834, you’ll have a much easier time getting approved for loans, mortgages, and premium credit cards. Lenders see you as an ultra low-risk borrower.
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Lower Interest Rates: If you have great credit, lenders will offer you the lowest interest rates. This can save you a lot of money on big loans like mortgages.
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Special Offers: Credit card companies will offer you exclusive rewards and loyalty programs to entice you to use their cards. Perks may include generous sign-up bonuses, airport lounge access, and bonus points offers.
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Increased Buying Power: Your high credit score allows you to borrow larger amounts. This gives you increased financial flexibility when making large purchases.
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Lower Insurance Premiums: Insurers see you as lower risk and are likely to offer you discounted premiums on policies like home and auto insurance.
How Rare is an 834 Credit Score in Canada?
A credit score of 834 puts you in rare company. According to Equifax, only 21% of Canadians have credit scores in the 800 to 850 range. And your 834 score is near the very top of that exceptional band.
Here is the full breakdown of Canadians’ credit score distribution according to Equifax:
- 300-579 (Poor): 10%
- 580-669 (Fair): 18%
- 670-739 (Good): 26%
- 740-799 (Very Good): 25%
- 800-850 (Exceptional): 21%
A very high score means that only about 1 in 5 Canadians get it. If you get an 834, you are in the top few percent of borrowers.
Tips to Maintain and Improve Your 834 Credit Score
Scoring 834 is an impressive achievement. But you’ll need to keep up good financial habits to stay in that top tier. Here are some tips:
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Always pay bills on time: Payment history is usually the biggest factor in your score. Never miss payments.
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Keep balances low: Experts recommend keeping credit utilization under 30%. But lower is better for your score.
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Limit credit inquiries: Only apply for credit when you really need it to avoid hard inquiries that aren’t needed. Too many can cause temporary dings.
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Monitor credit reports: Check Equifax and TransUnion reports regularly for errors or suspicious activity. Dispute inaccuracies immediately.
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Consider lowering utilization: Getting your balances below 10% of your credit limits can give your already high score a boost.
The Takeaway: What an 834 Credit Score Means
A credit score of 834 in Canada is an exceptionally strong score, putting you in the top echelon of borrowers. It unlocks the most favorable loan terms and gives you financial flexibility. Maintaining good financial habits is key to staying in this elite tier long-term. An 834 score demonstrates your creditworthiness and sets you up for financial success.
How a credit score is different from a credit report
A credit score and a credit report are integral components of your financial health but they have important differences.
- A credit report is a comprehensive record of your credit history and financial behavior over years or even decades (ever since you got your first credit card or loan). Credit reports provide a detailed overview of how you manage credit and give potential lenders an in-depth perspective from which to gauge your creditworthiness.
- Your credit score is a three-digit number that summarizes your credit health. Your credit score distills the information contained in your report into a number that provides creditors with a fast and easy way to assess what kind of credit risk you’ll be.
How to find your credit score
There are a variety of paid and free ways to check your credit score.
Credit Score explained – What makes a good score (in Canada)
FAQ
Does anyone have a 900 credit score in Canada?
In Canada, credit scores range from 300 to 900, with 300 being the worst score and 900 being the best. What is a good credit score?
How good is an 834 credit score?
Your 834 FICO® Score is nearly perfect and will be seen as a sign of near-flawless credit management. Your likelihood of defaulting on your bills will be considered extremely low, and you can expect lenders to offer you their best deals, including the lowest-available interest rates.
What percentage of people have a credit score of 830?
Your score falls in the range of scores, from 800 to 850, that is considered Exceptional. Your FICO® ScoreΘ and is well above the average credit score. Consumers with scores in this range may expect easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
What is considered a good credit score in Canada?
In Canada, according to Equifax, a good credit score is usually between 660 to 724. If your credit score is between 725 to 759 it’s likely to be considered very good. A credit score of 760 and above is generally considered to be an excellent credit score. The credit score range is anywhere between 300 to 900.