Average Canadian FICO Score is 762, Indicating Strong Consumer Credit Health Amidst Economic Uncertainty
FICO® Scores are dynamic as they interpret and summarize evolving consumer behaviour captured in credit bureau files
- 90 per cent of top Canadian lenders and credit unions use FICO® Scores.
- The average FICO® Score of Canadian borrowers remained steady from last year’s score of 762.
- The FICO® Score Open Access program helps lenders promote credit transparency by allowing them to provide their customers with the ability to access their FICO® Score for free.
Used by 90 per cent of the top Canadian lenders and credit unions, FICO® Scores are the industry standard for helping lenders make more accurate decisions about a consumer’s credit risk. The average FICO Score of Canadian consumers can provide a baseline metric of the nation’s credit health.
FICO’s recent analysis reflects economic headwinds both present and potentially looming such as persistent inflation, rising interest rates in response to the highest Consumer Price Index (CPI) levels in decades, and hourly wages unable to keep pace with the rising CPI. Competing factors such as robust employment growth and rising household incomes have helped to offset the economic strain Canadian consumers are experiencing.
“Persistent inflation, historically high interest rates, and growing affordability challenges are all major characteristics of the current Canadian credit landscape,” said
When examining credit delinquencies as of
While the uptick in credit delinquencies appears to have been driven primarily by bankcard and line-of-credit products, the Canadian high-interest rate environment may impact repayment behaviour on auto, finance, and mortgage originations and renewals throughout 2023 and 2024.
“We have been early adopters for FICO Score 10, as it provides our organization with enhanced predictive capabilities,” said
The amount of debt that Canadian borrowers hold is also a key metric to help better understand what may be on the horizon. The early stage of the pandemic saw the average Canadian credit consumer reduce their credit card balances by 13 per cent, from
Average credit card balances then increased modestly as of
Why Consumers Need to Know Their FICO® Score
As an integral component of the credit and financial ecosystem, FICO® Scores help millions of people worldwide gain access to the credit they need to do things like purchase a car, buy a home, or get a credit card.
FICO® Scores are dynamic as they interpret and summarize evolving consumer behaviour captured in the credit bureau data, which is stored and maintained by the two Canadian consumer reporting agencies. Monitoring the average FICO Score of Canadian borrowers has become a key barometer of the overall financial health of the Canadian credit population.
Knowing that access to credit is a key building block for economic inclusion and wealth building, FICO has created the FICO® Score Open Access program to promote credit transparency by enabling lenders to provide their customers with the ability to see their FICO® Score for free.
“We adopted the FICO Score Open Access program earlier this year to provide credit transparency for our members,” said
To learn more about the average FICO® Score in
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail, and many other industries. Using FICO solutions, businesses in over 100 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90 per cent of top Canadian lenders and credit unions, is the standard measure of consumer credit risk in
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