How to build and improve your credit score in Canada

Your credit score quietly shapes what you can borrow and at what rate. The good news: it responds to a few simple habits, and you can start improving it today.

How scoring works here

In Canada, credit scores run from 300 to 900, tracked by two bureaus (Equifax and TransUnion). Generally, above 660 is considered good and above 760 is excellent. Your score is built from a handful of factors:

• Payment history (the biggest factor). Paying on time, every time, matters more than anything else.
• Credit utilization. How much of your available credit you're using. Lower is better.
• Credit age. How long you've had credit accounts open.
• Credit mix and new inquiries. A healthy variety, and not too many applications at once.

Five habits that move your score

1. Pay on time, always

Set up automatic minimum payments so you never miss one. A single missed payment can linger on your report for years.

2. Keep balances low

Try to use less than 30% of each card's limit. If your limit is $1,000, keeping the balance under $300 helps your score.

3. Don't close your oldest card

Length of history helps you. Keeping an old card open (even lightly used) supports your score.

4. Apply for credit sparingly

Each application can cause a small, temporary dip. Space out applications and only apply when you need to.

5. Check your report for errors

You're entitled to a free copy of your credit report from each bureau. Mistakes happen, and fixing them can lift your score.

Building credit from scratch

New to credit, or rebuilding after a rough patch? A secured credit card or a small, well-managed line of credit, always paid on time, is one of the most reliable ways to establish a positive history.

Patience pays

Credit doesn't improve overnight, but it does improve. Consistent, on-time habits over a few months genuinely change your number, and your options.