Practical strategies for First Nations, Métis, and Inuit people to establish and grow their credit score
A strong credit score opens doors — to mortgages, car loans, better interest rates, and rental housing. For many Indigenous Canadians, particularly those living on-reserve where traditional credit-building pathways are limited, building credit requires intentional effort. This guide explains how credit works and gives you practical steps to build it in 2025.
Canada's two main credit bureaus — Equifax and TransUnion — calculate your credit score based on your credit history. Scores range from 300 to 900. Lenders use your score to assess lending risk.
Several factors make credit building more challenging for on-reserve First Nations people:
None of these barriers are insurmountable — but understanding them helps you plan your credit-building strategy.
Having a bank account is the foundation of your credit profile. Under the Bank Act, any Canadian can open a basic bank account with acceptable ID — including a Status Card. If you don't have a bank account, open one now. Even a no-fee digital account gives you a financial footprint and enables direct deposits, e-transfers, and bill payments.
A secured credit card is the most reliable first step for someone with no credit history or poor credit. You deposit a security amount (typically $200–$500) which becomes your credit limit. Use the card for small regular purchases, and pay the full balance every month.
| Card | Annual Fee | Minimum Deposit |
|---|---|---|
| Scotiabank SCENE+ Secured Visa | $0 | $500 |
| Home Trust Secured Visa | $0 or $59 | $500 |
| Capital One Secured Mastercard | $59 | $75–$200 |
| Neo Secured Card | $0 | $50 |
Credit unions often have more flexible lending criteria than banks and are more willing to work with clients who have limited credit history. Many credit unions near reserves have Indigenous community liaisons. A small personal loan from a credit union — repaid on time — builds credit effectively.
If a family member with good credit adds you as an authorized user on their credit card, their positive payment history may help build your score. You don't need to use the card — just being listed can help. This is a common strategy for people starting from zero credit history.
Payment history is the biggest factor in your credit score (roughly 35%). This includes credit card payments, loan payments, and in some cases utility and phone bills. Set up automatic payments or calendar reminders to ensure you never miss a due date.
Credit utilization — the percentage of your available credit that you're using — is the second biggest factor in your score. Aim to keep utilization below 30%. If your credit limit is $1,000, try to keep your balance below $300 at all times.
KOHO offers a credit-building feature that reports your payment activity to Equifax, helping you build credit while using a no-fee everyday account. This is particularly useful for Indigenous Canadians who want to build credit without taking on debt.
KOHO is a great option for Indigenous Canadians: no monthly fees, no minimum balance, and built-in spending tracking. Use code 45ET55JSYA for a sign-up bonus.
Open KOHO Free — Code 45ET55JSYAYou are entitled to a free copy of your credit report from both Equifax and TransUnion once per year. Review your report for errors — incorrect late payments or accounts you don't recognize can hurt your score. Dispute any errors directly with the bureau.
Free credit score monitoring is also available through apps like Borrowell (uses Equifax) and Credit Karma (uses TransUnion).
Building credit as an Indigenous Canadian takes time and consistency, but it is fully achievable. Start with the basics — a bank account and a secured card — and let the months of on-time payments do the work. A strong credit score is one of the most powerful financial tools you can build for your future.