Canadian credit scores are calculated by Equifax and TransUnion. Both use the 300–900 range. Scores may differ slightly between the two bureaus.
35%
Payment History
Biggest factor. Pay every bill on time, every month. One missed payment can drop your score 50–100 points.
30%
Credit Utilization
Keep your balances below 30% of your credit limit. Below 10% is ideal. High utilization hurts your score even if you pay in full.
15%
Credit Age
Older accounts help. Don't close old credit cards. The average age of all your accounts matters — opening new accounts lowers your average.
10%
Credit Mix
Having different types of credit (credit card + installment loan + mortgage) shows you can manage diverse credit. Not critical but helps.
10%
New Credit
Each credit application creates a hard inquiry (−5 to −10 points). Space out applications by at least 6 months. Pre-approval checks are soft inquiries — no impact.
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Borrowell Free — Equifax score, updated weekly. Most popular in Canada. Sign up in 2 min.
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Credit Karma Free — TransUnion score, updated weekly. Free forever, no credit card required.
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Your Bank App Free — RBC, BMO, Scotiabank, CIBC, and TD all show credit scores in their mobile apps (Equifax or TransUnion partnerships).
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Equifax Canada — Free annual credit report at equifax.ca. Paid monthly monitoring also available.
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TransUnion Canada — Free credit report at transunion.ca. Score and monitoring subscription available.
1
Pay every bill on time — no exceptions. Set up autopay for the minimum on every credit card and loan. Payment history is 35% of your score. Even one missed payment stays on your record for 6–7 years.
2
Lower your credit utilization below 30%. If you have a $5,000 limit, keep your balance below $1,500. If your balance is high, pay it down mid-cycle (before the statement date, not just the payment due date).
3
Get a credit card (or KOHO Credit Building) if you have no history. KOHO's Credit Building feature ($7/month) reports to Equifax every month and is the fastest path to a score if you have zero credit history. Home Trust Secured Card is another option.
4
Don't close old credit cards. Closing a card reduces your total available credit (raises utilization) and can lower your average account age. Keep old cards open even if you don't use them — put a small recurring charge on them.
5
Space out credit applications. Each hard inquiry drops your score 5–10 points. Don't apply for multiple cards in the same month. Wait at least 6 months between applications when possible.
6
Dispute errors on your credit report. 1 in 3 Canadians has an error on their credit report. Check both Equifax and TransUnion reports. Dispute any inaccurate late payments, wrong balances, or accounts that aren't yours.
7
Ask for a credit limit increase. If your lender increases your limit without increasing your balance, your utilization ratio drops automatically — which can boost your score within 30 days.
What is a good credit score in Canada?
Canadian credit scores range from 300–900. A good score is 660–724. Very good is 725–759. Excellent is 760+. Most lenders approve prime mortgages at 680+. The average Canadian credit score is around 660–670. Aim for 700+ as your target.
How can I check my credit score for free in Canada?
Free options: Borrowell (Equifax, updates weekly), Credit Karma (TransUnion, updates weekly), and most Canadian bank mobile apps. You can also request free official credit reports from Equifax and TransUnion directly — they're required by law to provide one free copy per year.
How long does it take to improve a bad credit score in Canada?
With consistent on-time payments and low utilization, you can typically see a 50–100 point improvement in 6–12 months. Recovering from a major negative mark (missed payment, collection, bankruptcy) takes 2–7 years for that item to fall off your report, though your score will improve before then as the item ages.
Does checking my own credit score hurt it?
No. Checking your own score through Borrowell, Credit Karma, or Equifax/TransUnion is a "soft inquiry" and does not affect your score. Only "hard inquiries" (when a lender checks your credit for an application) affect your score, and even those only drop it 5–10 points temporarily.