Credit Scores range from 300-900 with the average Canadian having one around the 720 range. Borrowers at the higher end of the scale get better rates, and those at the lower end get the less desirable rates due to their higher lending risk. It is interesting to note that only about 11% of Canadians have a Beacon Score above 800 and nearly no one has a perfect score of 900.

If your Beacon Score is below the magic number of 650, lenders will consider you a "B" client and will view you as someone with serious credit issues.

The best credit score by FICO definition means having ownership of an excellent reputation of being creditworthy. To this effect, you will be a magnet for handsome loans as well as excellent low interest credit lines. These and others are the main reasons why most people will try their best to attain the best rate. First though, there are different methods of determining this score and the most recognized system is the FICO method as given above. The Fair Isaac Corporation (FICO) inspired way of determining the best score enables proper calculation by lenders to determine the magnitude clients risk level.