How to Improve Your Credit Score in Canada

Your credit score affects your ability to get a mortgage, rent an apartment, and qualify for the best credit card rates. In Canada, scores range from 300 to 900 — and anything above 660 is generally considered good, while 725+ opens the door to the best rates.

Here's exactly what moves the needle, and how to improve your score as quickly as possible.

Check Your Score First — For Free

Before doing anything else, check your current score. Borrowell offers a free credit score check with no credit card required — it's a soft pull that won't affect your score. Knowing your starting point helps you measure progress.

What Makes Up Your Credit Score

In Canada, the two main credit bureaus are Equifax and TransUnion. Both use similar factors, weighted roughly as follows:

• Payment history (35%): Whether you pay bills on time. The single biggest factor.
• Credit utilization (30%): How much of your available credit you're using. Keep it under 30%.
• Credit history length (15%): How long your accounts have been open. Older is better.
• Credit mix (10%): Having different types of credit (card, loan, line of credit).
• New credit inquiries (10%): Hard pulls from new applications temporarily lower your score.

The Fastest Ways to Improve Your Score

1. Pay Every Bill On Time, Every Time

Payment history is 35% of your score. A single missed payment can drop your score significantly and stays on your report for up to seven years. Set up automatic minimum payments on every account so you never miss a due date — even if you plan to pay more manually.

2. Reduce Your Credit Utilization

If your credit card limit is $5,000 and your balance is $4,000, your utilization is 80% — which hammers your score. The target is under 30%, ideally under 10%. Pay down balances aggressively or ask your card issuer for a limit increase (without spending more).

3. Don't Close Old Accounts

Closing an old credit card reduces your available credit and shortens your average account age — both of which hurt your score. Even if you don't use an old card, keep it open and make a small purchase on it every few months to keep it active.

4. Limit Hard Inquiries

Every time you apply for new credit, a hard inquiry is recorded. Multiple applications in a short period signal risk to lenders. Space out credit applications and only apply when you genuinely need to.

5. Use a Secured Credit Card If You're Starting From Scratch

If you have no credit history or very poor credit, a secured card is the fastest way to build it. You deposit money as collateral (typically $200–$500) and use the card like a normal credit card. KOHO's secured card is one of the best options in Canada for this purpose.

How Long Does It Take?

With consistent on-time payments and reduced utilization, most people see meaningful improvement within 3–6 months. Rebuilding from serious damage (bankruptcy, collections) takes longer — typically 2–3 years of consistent positive behaviour.