Building Credit in Canada: From No File to 750

Publicité

Understand the Canadian Score
Canadian credit scores range from 300 to 900. Payment history and utilization (balances vs. limits) drive most of your score, followed by length of history, new credit, and credit mix. Aim to keep utilization below 30%—under 10% is even better.

Starter Tools That Work

  • Secured credit card: place a refundable deposit, use lightly, and pay in full.
  • Credit-builder loan through a credit union or fintech—payments are reported monthly.
  • Authorized user: get added to a relative’s well-managed, long-standing card.

Monthly Routine for Progress
Set autopay for at least the statement balance. Make a small mid-cycle payment to lower reported utilization before the statement date. Check both bureaus (Equifax and TransUnion) for errors and dispute inaccuracies promptly.

Publicité

Avoid Common Pitfalls
Multiple hard inquiries in a short window, carrying high balances, and late payments can stall your progress. Start with one secured card and, possibly, one installment account—quality beats quantity.

Graduating to Unsecured
After 6–12 months of perfect on-time payments and low utilization, request an upgrade to an unsecured card or apply for an entry-level card. Keep older accounts open to preserve your average age of credit.

Bottom Line
Consistency and low balances build momentum. With disciplined habits, a strong 700+ score is achievable within a year.