Credit Score Confusion? Here’s How Equifax and TransUnion Actually Score You

When it comes to buying a home or applying for a mortgage, one number can make or break your approval: your credit score. But in 2025, many Canadians are still unsure about how their score is calculated — and why it sometimes looks different depending on where they check it.

Let’s break it all down — clearly, simply, and without any financial jargon. At Swivel Mortgage Group, we believe knowledge is buying power, and we’re here to help you get mortgage-ready.

First Things First: What Is a Credit Score?

A credit score is a number between 300 and 900 that represents your creditworthiness — essentially how risky or reliable you are as a borrower.

• Higher scores = Lower risk for lenders

• Lower scores = Higher risk for lenders

The better your score, the better your chances of getting approved for a mortgage — and the better your interest rate.

Why Are There Two Different Credit Scores?

Canada has two major credit reporting agencies:👉 Equifax👉 TransUnion

Each bureau collects slightly different information and may use different scoring models, which is why your score can vary from one to the other.

Think of them as two chefs using similar ingredients but following slightly different recipes.

What Credit Score Do You Need for a Mortgage in 2025?

While every lender has their own rules, here’s a general guideline based on current market conditions:

(Source: Equifax Canada & TransUnion Canada)

How Are Scores Calculated? (Hint: It’s Not Just About Debt)

While the exact algorithm is private, here are the main factors that both bureaus use:

Why Your Score Might Be Different at Equifax vs. TransUnion

• Different lenders report to different bureausSome creditors report to one agency, not both. That creates gaps.

• Update timing may varyOne bureau may have more up-to-date info than the other depending on when lenders send updates.

• Scoring models differEach bureau may use a different formula — even for the same person.

Always Check Both Bureaus Before Applying

Before you start mortgage shopping, pull your credit reports from both Equifax and TransUnion. It's free to do once a year, and it's the best way to:

✅ Catch errors early✅ Spot any fraudulent activity✅ Understand how lenders see you

• Get your Equifax report here: https://www.equifax.ca/personal/products/equifax-consumer-credit-report

• Get your TransUnion report here: https://www.transunion.ca/

What If My Score Is Too Low for Approval?

Don’t panic. There are smart strategies you can use to boost your score:

1. Pay off credit cards strategically – focus on the highest balances first.

2. Ask for a limit increase – more available credit = lower utilization.

3. Avoid new applications – especially 3–6 months before a mortgage.

4. Dispute inaccuracies – both bureaus allow you to file corrections.

5. Use a secured credit card – if you're rebuilding, this can jumpstart your score.

At Swivel, we even have lenders that look beyond just your credit score. We consider income, job history, rental payment history, and more.

Final Thoughts

Your credit score doesn’t define you — but it does open doors. And in today’s mortgage market, being proactive can mean the difference between getting the keys to your dream home or hitting a financing wall.

📞 Ready to see where you stand and how to improve your mortgage approval odds?

Let’s book a quick, no-pressure mortgage review with a Swivel expert.