WealthHow to improve your credit score in Canada
Short answer: always make at least the minimum payment on time, keep total credit utilization under 30% when possible, avoid unnecessary applications, and consider keeping an old no-fee account if you can manage it. Check both credit reports for errors or fraud. Durable improvement comes from consistent habits, not an instant trick.
The factors you can actually control
| Factor | Useful action | Common mistake |
|---|---|---|
| Payment history | Pay on time, at least the minimum | Skipping a payment while disputing a charge |
| Credit utilization | Aim to use less than 30% of available credit | Using nearly the full limit, even if paid later |
| Account age | Keep a manageable old no-fee account | Closing every paid account without checking the effect |
| Applications | Apply only when needed | Submitting several applications close together |
| Accurate reports | Check both bureaus and dispute errors | Assuming the file is always correct |
1. Protect your payment history
The Financial Consumer Agency of Canada calls payment history the most important part of a credit score. Set an automatic minimum payment and an alert before the due date. If you expect trouble paying, contact the lender before the deadline instead of waiting until the account is late.
2. Understand the 30% utilization guideline
Credit utilization compares reported balances with available credit. A $10,000 total limit and $2,000 in balances equal 20%. The federal agency suggests trying to use less than 30%. A balance may be reported before your full monthly payment, so reducing it before the statement date can help keep the ratio lower.
Example
Two cards with $5,000 limits provide $10,000 of total credit. A combined $3,000 balance is 30% utilization. Charging to the limit and paying later does not necessarily make the high utilization invisible when it is reported.
3. Do not erase a long history without a reason
Closing an older account may reduce both available credit and average account age. Keeping an old no-fee account can help if it is easy to monitor. However, you do not need to keep a costly account or one that makes overspending more likely.
4. Time rate-shopping inquiries carefully
A full application for a card or loan may create a hard inquiry that appears on your report. Checking your own report is a soft inquiry and does not lower your score. When shopping for a mortgage or car loan, the federal agency advises getting quotes within about a two-week period so bureaus may treat them as one rate-shopping event.
5. Check both credit reports
Equifax and TransUnion may hold different information. Reviewing your files can reveal an unfamiliar account, wrong limit or late payment recorded in error. Checking your own file does not hurt your score. Follow the relevant bureau's dispute process when information is inaccurate.
A realistic 90-day plan
- Today: turn on automatic minimum payments and alerts.
- This week: total limits and balances to calculate utilization.
- This month: target either the highest-rate debt or the smallest balance.
- Every month: avoid unnecessary applications and review statements.
- Every year: read both bureau reports and correct anomalies.
Reduce the balances costing you the most
Our calculator compares the order and timeline for paying multiple debts. It does not calculate a credit score.
Plan your payoff →Frequently asked questions
Does checking my own score lower it?
No. Looking at your own report or score is normally a soft inquiry. Applying for new credit may produce a hard inquiry instead.
Do I need to carry a balance to build credit?
No. Carrying a balance and paying interest is not required to demonstrate responsible payment. Using the account and paying on time is enough.
How long does improvement take?
There is no guaranteed timeline. Lenders report on their own cycles and scoring models differ. Recent late payments, high balances and errors must first be addressed; consistency matters more than a single action.
Sources and method
- Canada.ca — Improving your credit score, verified August 31, 2026.
- Canada.ca — Credit reports and scores, verified August 31, 2026.
We distinguish official consumer guidance from the non-public internal rules used by each scoring model.