Your credit score is a three-digit number that represents your financial responsibility. Lenders look at this number to assess the risk of lending you money and to help determine the lending terms (such as the interest rate and the minimum payment required) of the loan, the credit line, or other credit accounts you're getting.
Credit scores range from 300 to 900. Young people and new Canadians who haven't established their credit in Canada will start with lower scores. As you borrow money and pay it back, your score can increase. The higher the score, the better: a larger number can lower your potential interest rate for credit. If you're planning on getting a car loan any time soon, you'll want a high score up your sleeve. Combined with other information, such as your income, total debt payments, and assets, a good credit score can also make it easier to get approved for bigger loans like a mortgage on a home.
According to Equifax, credit scores in the 660 to 900 range are good, very good, or excellent.