Credit Score Questions Canadians Ask
Answers to common credit score questions in Canada: what is a good score, how to build credit, disputes, and more.
Building credit in Canada from scratch typically takes 3 to 6 months before you have a credit score, and 12 to 24 months to reach a good score of 700 or above. The two main credit bureaus in Canada, Equifax and TransUnion, need at least one active credit account reporting for a minimum of 3 months before generating a score. To build credit quickly, open a credit card (secured if needed), use it for small purchases, and pay the full balance on time every month. Keep your utilization below 30% of your credit limit. Adding a second credit product like a small personal loan or a line of credit after 6 months helps diversify your credit mix. For newcomers to Canada, many banks offer secured credit cards and newcomer programs specifically designed to help establish credit history. Avoid applying for multiple credit products at once, as each application creates a hard inquiry that temporarily lowers your score.
No, checking your own credit score does not lower it. When you check your own score, it is classified as a soft inquiry (or soft pull), which has zero impact on your credit score. You can check your score as often as you want without any negative effects. Free services like Borrowell (Equifax score) and Credit Karma (TransUnion score) allow you to monitor your score regularly at no cost. What does lower your score is a hard inquiry, which occurs when a lender checks your credit as part of a loan or credit card application. Each hard inquiry can temporarily reduce your score by 5 to 10 points for up to 12 months. However, multiple hard inquiries for the same type of product within a 14 to 45 day window (like mortgage shopping) are typically grouped and counted as a single inquiry. Regularly monitoring your score through soft checks is actually recommended as it helps you catch errors and detect potential identity fraud early.
In Canada, credit scores range from 300 to 900. A score of 660 to 724 is considered good, 725 to 759 is very good, and 760 and above is excellent. Most Canadians have a score between 650 and 750. To qualify for the best mortgage rates and premium credit cards, you generally need a score of 720 or higher. A score of 600 to 659 is considered fair and will limit your options but still allow you to get approved for basic credit products. Below 560 is considered poor and you may need to use secured credit cards to rebuild. The five factors that determine your score are payment history (35%), credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). The most impactful thing you can do to maintain a high score is to always pay at least the minimum on time and keep your credit card balances below 30% of your limits.
The fastest ways to improve your credit score in Canada include paying down credit card balances to below 30% of your limit (ideally below 10%), ensuring all payments are made on time, and disputing any errors on your credit report. Becoming an authorized user on a family member's card with a long history and low balance can also provide an immediate boost. If you have no credit, opening a secured credit card and using it responsibly for 3 to 6 months will establish your score. Avoid closing old credit accounts, as the length of credit history matters. Request a credit limit increase on existing cards to lower your utilization ratio without changing your spending. Set up automatic payments for at least the minimum amount to prevent missed payments. Most people can see a 50 to 100 point improvement within 3 to 6 months by focusing on utilization and payment consistency. Check your free score through Borrowell or Credit Karma to track your progress.
Borrowell is a Canadian fintech company that provides free credit score monitoring using your Equifax credit score. The service is completely free with no hidden fees or paid tiers required for basic credit monitoring. When you sign up, you get access to your Equifax credit score updated weekly, your full Equifax credit report, and credit score history tracking. Borrowell makes money by recommending financial products like credit cards, loans, and savings accounts based on your credit profile, earning referral fees from lenders when you apply. They also offer Borrowell Boost, which reports your rent payments to Equifax to help build your credit score (a premium feature). The company is backed by major investors and is one of the most widely used financial apps in Canada. Using Borrowell to check your credit score is a soft inquiry and does not impact your score. It is a legitimate and safe service regulated by Canadian privacy and financial laws.
To dispute an error on your credit report in Canada, start by getting copies of your report from both Equifax Canada and TransUnion Canada (you can request free copies online or by mail). Review each entry carefully for errors such as incorrect account balances, accounts that do not belong to you, wrong payment history, or outdated information. To file a dispute with Equifax, use their online dispute portal, call 1-800-465-7166, or mail a dispute form. For TransUnion, use their online dispute centre, call 1-800-663-9980, or submit by mail. Include supporting documentation such as bank statements, payment confirmations, or correspondence with the creditor. The credit bureau must investigate within 30 days. You should also contact the creditor directly to notify them of the error. If the dispute is resolved in your favour, the correction will be reflected on your report within 1 to 2 billing cycles. If the bureau does not resolve the error, you can file a complaint with the Financial Consumer Agency of Canada (FCAC).
Equifax and TransUnion are the two major credit bureaus in Canada, and both calculate your credit score independently. Your scores may differ between them because not all creditors report to both bureaus, they use slightly different scoring models, and they may have different information about your accounts. Equifax uses a score range of 300 to 900 and is the more commonly pulled bureau by Canadian lenders, particularly for mortgages. TransUnion also uses a 300 to 900 range and is popular with credit card issuers and auto lenders. You are entitled to a free copy of your credit report from each bureau once per year by mail, or you can use free services like Borrowell (Equifax) and Credit Karma (TransUnion) for regular monitoring. It is worth checking both reports periodically to ensure accuracy. If you find an error, you must dispute it with each bureau separately. Some financial products may only check one bureau, so having accurate information with both is important for your financial health.
You can get your credit report for free from both Equifax Canada and TransUnion Canada. For ongoing monitoring, Borrowell provides free weekly Equifax credit score updates and report access, while Credit Karma offers free TransUnion score monitoring. To request directly from the bureaus, Equifax offers a free report by mail (takes 5 to 10 business days) or instant online access through their paid subscription ($19.95/month). TransUnion also offers free reports by mail or online through their subscription service. Your credit report contains your personal information, credit account details (credit cards, loans, mortgages), payment history, credit inquiries, and any collections or public records. Review each section carefully for errors: incorrect account balances, accounts you did not open, wrong personal information, and payments incorrectly marked as late. An error-free credit report is essential for getting the best rates on mortgages and loans. Check your report from both bureaus at least once a year, as they may contain different information.