Credit Score Basics in Canada: What Affects It and How to Improve It

Your credit score is a number that summarizes how you’ve handled credit over time. Lenders may use it when you apply for things like a credit card, a loan, or a mortgage.

What usually affects your score

• Payment history: paying on time matters a lot.
• Credit utilization: using a smaller portion of your available credit is usually better.
• Length of history: older accounts (kept in good standing) can help.
• New credit: many new accounts in a short period can look risky.
• Credit mix: a blend of types of credit can help over time (not required, just common).

Simple ways to build or improve credit

• Pay bills on time (set reminders or auto-pay)
• Keep balances manageable relative to limits
• Don’t apply for multiple credit products at once
• Review your credit report occasionally for errors

Protecting your credit

Be careful with links, emails, and unexpected calls asking for personal information. Scammers often target financial accounts. If something feels rushed or strange, slow down and verify using official contact methods.

Related: Budgeting Basics | Avoiding Online Scams

Back to General Blog.