How to improve your credit score in Canada
Your credit score is built from how you have handled credit. There are no shortcuts, but the steps are simple, and most people see progress within a few months of consistent habits.
The plan
- Get both reports. Canada has two credit bureaus, Equifax and TransUnion. You can request your credit report from each for free, and checking your own report does not affect your score.
- Check for errors. Look for accounts you don't recognise, wrong balances or late payments that weren't late. Dispute errors directly with the bureau that shows them.
- Never miss a payment. Payment history is the most important part of your score. Set up automatic minimum payments on every account so nothing slips, then pay more manually.
- Keep balances under 30% of your limits. FCAC suggests using less than 30% of your total credit limit, even if you pay in full each month. On a $5,000 limit, that means keeping the balance under $1,500.
- Keep old accounts open. The length of your credit history matters. A no-fee card you've had for years helps, even with a zero balance.
- Apply for credit only when you need it. Each application is a hard inquiry. When shopping for a mortgage or car loan, get your quotes within about two weeks so they count as one.
- Give it time. Negative information, such as late payments, generally stays on your report for about six years. Good habits gradually outweigh it.
This week
- Request your free reports from Equifax and TransUnion.
- Turn on automatic minimum payments for every card and loan.
- Add up your balances and limits; if you're over 30%, use the credit card payoff calculator to set a target.
Calculators for this plan
General information, not financial advice. This plan is a general guide. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.
Sources
- FCAC (Canada.ca): Improving your credit score
- FCAC (Canada.ca): Getting your credit report and score
- FCAC (Canada.ca): Checking your credit report for errors and fraud
- FCAC: Understanding your credit report and credit score (how long information stays)
Checked October 16, 2026. Rules and limits change; confirm with the source before acting.