Raising your credit score in Canada takes discipline, but the levers are well understood. These ten tips are based on how Equifax Canada and TransUnion Canada actually calculate your score — not on myths or marketing claims. Focus on the highest-impact items first.
Payment history is 35% of your credit score — the single largest factor. Set up automatic minimum payments on every credit product so you never accidentally miss a due date. A payment that is 30 days late is reported to the bureaus and can drop your score by 50 to 100 points. There is no quicker way to damage a good score or stall a rebuilding effort.
If you have missed payments in the past, the damage fades over time — but only if you never miss again. Your recent history carries the most weight.
Credit utilization — how much of your available revolving credit you are using — makes up about 30% of your score. Paying down balances is one of the fastest score improvements available because the change shows up within one or two billing cycles. Aim to keep each card below 30% of its limit. Below 10% is ideal for maximizing your score.
The length of your credit history matters. Closing old accounts, especially your oldest card, shortens your average account age and reduces your total available credit (increasing utilization). Unless an account has an annual fee that is not worth paying, keep it open and use it occasionally to prevent the issuer from closing it for inactivity.
Request your free credit reports from Equifax Canada and TransUnion Canada at least once a year. Review every item — accounts, balances, payment history, and inquiries. Errors are more common than most people realize. Disputing and correcting an error can produce a fast score improvement with no other changes required.
Each time you apply for credit, a hard inquiry is placed on your file. Multiple hard inquiries in a short period can signal financial desperation to lenders and lower your score. Apply for new credit only when you genuinely need it, and space applications out over time. A single hard inquiry typically causes only a 5 to 10 point drop, but several in one month compounded together matter more.
If your credit file is thin or damaged, adding a secured credit card or credit builder loan creates fresh positive history. These products are designed for people who cannot qualify for mainstream credit. Even one secured card used responsibly for 12 months can meaningfully improve a thin or damaged file.
A higher credit limit on an existing card — without increasing your spending — lowers your utilization ratio. For example, a $1,000 balance on a $2,000 limit is 50% utilization. If the limit increases to $4,000, the same balance is 25% utilization. Contact your card issuer and ask for a credit limit review. Some issuers do a soft pull (no score impact), but confirm before requesting.
Having both revolving credit (credit cards, lines of credit) and installment credit (car loan, personal loan, mortgage) gives your score a boost from the credit mix factor, which accounts for about 10% of your score. If you only have credit cards, a small personal loan or credit builder loan adds diversity. If you only have installment loans, a credit card rounds out the mix.
If a parent, spouse, or sibling has a credit card with a long, positive history and low utilization, being added as an authorized user can bring that history into your credit file. You do not need to use the card — the account simply appears on your report. Not all issuers report authorized users to both Equifax and TransUnion, so confirm before relying on this strategy.
You cannot manage what you do not track. Free credit score monitoring through your bank app, Borrowell (Equifax), or Credit Karma (TransUnion) lets you see your score month-to-month. This helps you notice if something unexpected drops your score (a new collection, a missed payment, an error) and act quickly. Checking your own score is always a soft inquiry — it never affects your score.
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