Your credit score affects your mortgage rate, your rental applications, your car loan, and sometimes even your job prospects. In Canada, scores range from 300 to 900 — and most lenders want to see 680 or above for prime mortgage approval.
Here's what actually moves the needle, and how fast.
Payment history is 35% of your score. One missed payment can drop your score 50–100 points and stays on your report for 6 years. Set up autopay for minimums on every account, then pay the rest manually.
If your credit card limit is $10,000, keep your balance below $3,000. Below 10% is ideal. Utilization resets monthly — paying down a card can improve your score within one billing cycle.
Length of credit history accounts for 15% of your score. An old credit card you rarely use still helps — closing it shortens your average account age and can drop your score.
Every time you apply for credit, a hard inquiry is recorded. Multiple applications in a short window signal financial stress. Rate shopping for mortgages or car loans is treated as a single inquiry if done within 14–45 days.
Request free reports from Equifax and TransUnion annually. Errors are more common than people think — a wrong address, a paid collection still showing as unpaid, or someone else's account on your report. Dispute errors directly with the bureau.
If you have little credit history, a secured card (you deposit a security amount as collateral) reports to the bureaus just like a regular card. Use it for one small purchase per month and pay it in full.
Ask a family member with strong credit to add you as an authorized user on their card. Their positive payment history can appear on your report — a significant boost if you're rebuilding.
A Mortgage Agent Level 2 can help you understand your options now — and build a plan to qualify sooner than you think.
Book a Free Credit Review →Credit improvement isn't complicated — it just requires consistency. Pay on time, keep utilization low, don't close old accounts, and check your report for errors. Do those four things for 12 months and most Canadians see meaningful improvement.