Your credit score matters more than many Canadians realize.
It affects:
- Loan approvals
- Interest rates
- Rental applications
- Financial opportunities
The good news is this.
Credit scores can be improved.
This guide explains how to improve your credit score in Canada, using clear and realistic steps that work.
What Is a Credit Score in Canada?
A credit score is a number that shows how reliable you are as a borrower.
In Canada, scores typically range from:
- 300 to 900
General Credit Score Ranges
- Poor: 300–559
- Fair: 560–659
- Good: 660–724
- Very Good: 725–759
- Excellent: 760+
Lenders use this number to assess risk.
What Affects Your Credit Score the Most?
Understanding this is key to improvement.
Main Factors
- Payment history
- Credit utilization
- Length of credit history
- Credit mix
- New credit inquiries
Payment history and utilization matter the most.
Step 1: Pay Every Bill on Time
Late payments hurt your score quickly.
Even one missed payment can cause damage.
What You Can Do
- Set up automatic payments
- Pay at least the minimum
- Use reminders
Consistency builds trust.
Step 2: Lower Your Credit Utilization
Credit utilization is how much credit you are using compared to your limit.
Simple Rule
👉 Use less than 30% of your available credit.
Example:
- Credit limit: $1,000
- Target balance: under $300
Lower utilization improves scores faster.
Step 3: Avoid Closing Old Accounts
Older accounts help your credit history.
Closing them can:
- Shorten your credit age
- Lower your score
If there is no annual fee, keeping them open is often better.
Step 4: Check Your Credit Report Regularly
Errors happen more often than people think.
In Canada, you can check your report for free through:
- Equifax
- TransUnion
Look for:
- Incorrect balances
- Accounts you do not recognize
- Late payments that are inaccurate
📌 Equifax or TransUnion Canada
Step 5: Be Careful With New Credit
Applying for too much credit at once can hurt your score.
Each application creates a hard inquiry.
Apply only when necessary.
How Long Does It Take to Improve a Credit Score?
Small improvements can appear in:
- 30–60 days
Major improvements take:
- Several months of consistent habits
Credit improvement is a process, not a quick fix.
Final Thoughts
Improving your credit score in Canada is not complicated.
It requires:
- Awareness
- Discipline
- Patience
Small actions, done consistently, make a big difference.
👉 Not sure what’s hurting your credit score or how to fix it?
Book a free financial clarity session with Terces Finance for personalized guidance.
