Proven steps ranked by speed and impact. Most Canadians can see 30-50 point improvement within 3-6 months.
Improving your Canadian credit score is not complicated — but it does require understanding which actions have the biggest impact and the most realistic timelines. This guide ranks every strategy by how fast you'll see results and how large the impact will be on your 300-900 Canadian score.
Credit utilization (the % of your available revolving credit you're using) accounts for 30% of your score. If you're carrying $4,000 on a $5,000 limit card, your utilization is 80% — extremely damaging. Pay it down to under 30% ($1,500 or less) and your score can jump 30-60 points within one statement cycle.
The math: Getting from 80% utilization to under 30% on a $5,000 card means paying down roughly $2,500. If that's not possible, even getting to 50% is a meaningful improvement.
A 2022 CBC Marketplace study found errors on the credit files of a significant portion of Canadians tested. Common errors include: accounts that aren't yours, balances that don't match your statements, late payments incorrectly recorded, and accounts that should have fallen off after 6-7 years. Disputing even one error can produce a 20-50 point improvement when resolved in your favour.
Check both bureaus: Get your free Equifax report via Borrowell and your TransUnion report via Credit Karma. File disputes directly at equifax.ca and transunion.ca.
If a family member or partner has a long-standing credit card with low utilization and perfect payment history, being added as an authorized user can add years of positive history to your file instantly. Not all lenders report authorized user status to Canadian bureaus, so confirm with the primary cardholder's bank first.
Enter your situation to estimate your potential score gain.
Potential gain:
Payment history is 35% of your score — the single biggest factor. Each on-time payment adds a positive data point. After 6 consecutive months of perfect payments, you'll see measurable improvement. After 12 months, the change is significant. Set autopay for every account for at least the minimum payment. No exceptions.
KOHO's Credit Building subscription (starting at $7/month, or free with KOHO Extra) works by holding a small amount in a credit account and reporting your monthly repayment to Equifax Canada. You build real payment history — the #1 credit score factor — without the risk of a credit card or traditional loan. This is especially powerful for Canadians with thin files, newcomers, or anyone rebuilding after a credit setback.
Every hard inquiry costs you a few points and stays on your Canadian credit file for 3 years. If you're actively trying to improve your score, avoid new applications during your improvement period unless absolutely necessary. The exception: if you're rate-shopping for a mortgage or car loan, multiple inquiries within a 14-45 day window are typically treated as a single inquiry.
Length of credit history accounts for 15% of your score. Every year your oldest account stays open, your average account age increases. Never close your oldest credit card just because you don't use it — keep it open with a small annual charge (like a Netflix subscription) to keep it active.
Having both revolving credit (credit cards, lines of credit) and installment credit (car loans, mortgages, personal loans) shows lenders you can handle different types of debt responsibly. This accounts for 10% of your score. Don't take out a loan just for the mix — but if you naturally have an opportunity to add an installment product, it helps.
KOHO's Credit Building feature reports your monthly payment to Equifax — helping you build a Canadian credit history without a credit card. Starting at $7/month or free with KOHO Extra.
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