How to Improve Your Credit Score in Canada

Pay your bills on time

Payment history is the most important factor in calculating your score. Every late payment can have a negative impact. Set up automatic payments or reminders to never miss a due date.

Limit credit applications

Each time you apply for new credit (card, loan, line), an inquiry is made. Too many inquiries in a short period can lower your score. Only apply for credit when necessary.

Maintain reasonable balances

Your credit utilization rate (the ratio between what you owe and your limit) has a significant impact. Ideally, keep this rate below 30%. The lower the rate, the better for your score.

Correct errors in your file

Check your credit file regularly with Equifax and TransUnion. If you find an error (an account you didn't open, a payment marked late when it was on time), have it corrected. Errors can harm your score.

Build history

The length of your credit history matters. The longer you have well-managed open accounts, the better. Avoid closing your oldest credit cards, even if you don't use them much anymore.

Have your rent recognized if eligible

If you're a renter, having your eligible rent payments recognized can add an additional positive piece of information to your file. This is data that doesn't appear automatically, and can help build your history.

No single solution

There's no miracle solution for improving your credit score. Improvement comes from a combination of good habits maintained over time. LocaCredit is one tool among others; it doesn't replace good financial management practices.

Learn more

• Rent and credit score
• Report rent to Equifax
• Rebuild credit after bankruptcy
• Credit after a consumer proposal
• Newcomer: build credit in Canada