How to Improve Your Credit Score in Canada

Payment history is the single biggest factor (35%) in your credit score. Even one payment that's 30+ days late can drop your score by 50-100 points. Set up automatic payments for at least the minimum amount on every account.

If you've missed payments in the past, start paying on time now. The impact of late payments diminishes over time, and recent on-time payments carry more weight.

Try to keep your credit utilization below 30% of your total available credit. If you have a $10,000 limit across all cards, keep your total balances below $3,000.

Even better, aim for under 10% for the best score impact. You can lower utilization by paying down balances, requesting credit limit increases, or making multiple payments per month.

Your average account age matters. Closing a 10-year-old credit card shortens your history and reduces your available credit (increasing utilization). Keep old accounts open, even if you rarely use them.

Use them for a small recurring charge (like a streaming subscription) and set up autopay to keep them active.

Review your credit reports from both Equifax and TransUnion annually. Look for accounts you don't recognize, incorrect balances, or payments incorrectly marked as late.

Dispute any errors directly with the credit bureau. Correcting mistakes can boost your score quickly.

Each credit card or loan application creates a hard inquiry that can lower your score by 5-10 points. Space out applications by at least 3-6 months, and only apply when you're reasonably confident you'll be approved.

Multiple inquiries in a short period can signal financial desperation to lenders.